The State Department for Energy has outlined various policy interventions geared towards reducing the cost of electricity.
The interventions will also seek to ensure long-term viability and sustainability in the energy sector.
A report of the Departmental Committee on Energy on the Consideration and Scrutiny of the 2024 Budget Policy Statement interventions include increasing investments in geothermal energy, adopting Public Private Partnerships in energy projects and pushing for payment of debt owed to Kenya Power by county governments and clearing pending bills and court awards in the State Department.
Committee chair Vincent Kawaya however noted that the proposed ceiling to the State Department is Sh64.8 billion, representing a decline of 0.4 per cent (or Sh245 million), from Sh64.6 billion allocated in Financial Year 2023/2024 Budget Estimates.
Presenting the report to the Budget and Appropriations Committee, Kawaya however noted that the proposed ceiling will grow to Sh73.8 billion in Financial Year 2025/2026 before declining to Sh72.2 billion in Financial Year 2026/2027.
“In terms of overall allocation, power transmission and distribution will have the highest expenditure allocation ceiling of Sh47.9 billion, representing 74 per cent of the total allocations to the State Department,” he said.
Kawaya further noted that power generation programme will get a total of Sh15.7 billion taking 24 per cent of the total allocation.
He said the remaining two per cent is shared between the alternative energy technologies programme and the general administration programme.
“When compared to Financial Year 2023/2024 Estimates, the ceilings to power generation increased by Sh2.3 billion (17.6 per cent), signifying acceleration in the geothermal projects, power transmission and distribution by Sh202 million,” he noted.
Committee on Energy recommended that within two months upon approval of 2024 BPS by the National Assembly, the State Department for Energy provide an update on the status of the proposed PPP projects to support electricity transmission and the percentage of completion of key transmission lines which can contribute to efforts to lower cost of electricity.
It further recommended that the Cabinet Secretary for Energy fast-track the process of delinking development initiatives from Kenya Power to operate on commercial principles to turn around the fortunes of the utility firm.
Electricity is a crucial economic and social utility that is necessary for manufacturing, for vital services like security and health and for improving the quality of life for populaces.
It is also a critical enabler toward implementing the Bottom-up Economic Transformational Agenda.
