THE government proposes to increase electricity distributors and compensate users in case of power blackouts, a move likely to liberalise the sector and enhance efficiency.
Those are among the raft of measures in the draft National Energy Policy 2025-34 released on Wednesday as the government spearheads equitable energy transition, focusing on innovation, resilience, and sustainability to meet the needs of all Kenyans.
The 10-year roadmap also seeks to address the challenges of energy access, affordability, and security while promoting clean energy solutions to reduce our dependence on fossil fuels and drive green industrialisation.
“With over 25 per cent of the population still lacking electricity access, it is crucial that we expand our energy infrastructure and leverage renewable energy resources, including solar, wind, geothermal, and bioenergy, to provide reliable and affordable energy to all corners of the country. If implemented in its current form, the proposed policy, which is now open for public participation, will likely end up bringing competitiveness in electricity distribution in the country, currently controlled by Kenya Power," the policy reads in part.
According to the Ministry of Energy, the establishment of multiple retailers would enable optimal utilisation of resources, particularly the distribution network.
“This shall ride on the enabling policies such as the open grid access, captive power, net metering and the power market. Other key enablers include the development of a wheeling tariff to enable transportation of electricity generated by other producers to their customers through the existing infrastructure,’’ the policy reads in part.
This is not the first time the government is mulling to end Kenya Power’s monopoly.
Late last year, Energy CS Opiyo Wandayi hinted at plans to allow power generators including KenGen to directly distribute power to consumers using existing infrastructure.
He said this when he unveiled Energy Electricity Reliability, Quality of Supply and Service Regulations 2024.
The policy also proposes plans to compensate electricity users in case of blackouts that inconvenience their undertakings.
