Engineers Urge Transparency in Kenya Power Sector Reforms
The Institution of Engineers of Kenya (IEK) has called for greater transparency, accountability, and fair competition in Kenya’s power sector as the government rolls out new initiatives aimed at transforming the country’s energy landscape.
In a recent statement, the IEK commended the government’s disclosures on several energy projects, including a partnership with Adani Energy Solutions Limited, noting that these align with the Energy Act and Public-Private Partnership (PPP) Act. However, the IEK raised concerns over local content requirements, as PPP projects are exempt from the Public Procurement and Asset Disposal Act. They urged the government to clarify how local participation will be ensured in large-scale projects to boost local industry and skills.
Financial transparency is another area IEK highlighted, particularly regarding the Annual Revenue Requirement (ARR) designed to manage power costs. The IEK stressed the need for clearer guidelines on tariff setting, emphasizing that tariffs should provide Kenyans with fair value for infrastructure investments, especially as new power lines are established.
“We need to ensure that Kenyans are getting the best value in terms of infrastructure costs,” said IEK President Shammah Kiteme.
The IEK also applauded the planned Green Energy Park in Naivasha, an initiative by Kenya Electricity Generating Company (KenGen) to provide clean, cost-effective energy to industries by eliminating transmission fees. This project is expected to boost the competitiveness of Kenya’s manufacturing sector by lowering electricity costs, a crucial factor in production expenses.
In addition, the IEK recognized Kenya’s advancements in nuclear energy, with the Nuclear Power and Energy Agency (NuPEA) aiming to establish the country’s first nuclear power plant by 2034. This facility is expected to deliver reliable energy to support Kenya’s economic growth and create over 1,000 jobs for engineers and other skilled workers.
On grid management, the IEK emphasized the importance of an independent system operator (ISO) as stipulated in the Energy Act 2019. Currently, the Kenya Power and Lighting Company (KPLC) handles both transmission and distribution, leading to potential conflicts of interest. An independent operator, IEK suggested, would ensure fair access to the grid for all energy providers. Instead of building a new control center, IEK proposed that KPLC’s existing center could be restructured to operate independently, minimizing redundancy and reducing costs.
The IEK also highlighted the frequency of nationwide blackouts as a reason for urgent grid reforms. They urged the Ministry of Energy to prioritize grid independence, particularly the delayed transfer of KPLC’s transmission assets to the Kenya Electricity Transmission Company (KETRACO), with a proposed deadline of 2025.
To further strengthen the sector, the IEK recommended that the government engage all stakeholders in discussions around power sector reforms. Inclusive public engagement, they argued, would balance the interests of both producers and consumers and foster a more robust, transparent energy policy framework.
As Kenya’s power sector evolves, the IEK pledged to support efforts that prioritize affordable, reliable, and transparent electricity access, viewing these reforms as essential to driving Kenya’s economic growth and industrialization journey.
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