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Kenya Power Company To Be Split Into Two As New Deal Signed With Ethiopia

SK 2 years ago 2 min read

In the upcoming years, potential reforms at Kenya Power and Lighting Company (KPLC) could finally lead to a reduction in the monopoly held by the country’s sole energy provider.

According to a document made public by the Ministry of Energy, Kenya Power is going to be divided into two companies: one will handle commercial customers, while the other, the Rural Electrification and Renewable Energy Corporation (REREC), would handle small users, mostly homes.

Gordon Khilangwa, principal secretary for energy, said the plan calls for public input before to implementation.

“We’re seeking stakeholders’ view on this matter after which we will develop a work plan and timelines of implementation. It is work in progress,” he said.

The plan will be another step in the parastatal’s history of reducing its obligations, and it will be the second such split since the establishment of the Energy, Petroleum, and Regulatory Authority (EPRA).

Details of the proposed split have just emerged, days after Kenya Power and Ethiopian Electric Power (EEP) signed a Power Purchase Agreement (PPA) to start trading power on November 1, 2022.

Kenya will get a maximum firm capacity of 200 MW for the first three years, followed by a maximum firm capacity of 400 MW for the remaining 25 years of the PPA.

Kenya Power praised the agreement as being competitive and claimed that as a result, Kenyans will have access to clean, dependable, and inexpensive power.

With a contractual 600MW capacity, EEP will be Kenya Power’s second-largest power supplier after KenGen Hydros Eastern Cascade.