KenGen plans to sell electricity directly to consumers

Nov, 25th 2020 – Electric power producer KenGen is set to start selling electricity directly to consumers thereby ending Kenya Power and Lighting Company’s close to 100 years of monopoly in the market.

The company’s chief executive officer Rebecca Miano said the parastatal was awaiting finalisation of the new regulations under the Energy Act 2019 so as to start selling power to large consumers.

The Energy Act 2019 was signed into law by President Uhuru Kenyatta in March 2019 but the rules giving the nod to allow other companies other than KPLC to apply for licences to sell electricity directly were yet to be put in place. Ms. Miano said, “The Energy Act 2019 has provision for us to sell power directly especially to large consumers. What is pending are the regulations of how that would be undertaken and how the infrastructure would be based. We are certain that when the regulations are ready, that possibility will be there.”

¬†KenGen’s move to target large consumers would deal a major blow to Kenya Power as they account for over half of the firm’s electricity sales. It is the largest electric power producer in Kenya producing about 75 percent of the electricity consumed in the country.

KenGen will need a distribution licence and shall rely hugely on the network built by Kenya Electricity Company (Ketraco). Cabinet Secretary Charles Keter responded to questions over the allegations saying, “A new power distributor would require new assets and thus there may be expensive duplication of roles.”

Kenya power has also complained of dropped income due to the rise of the use of solar power.

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