Fuel prices to be reviewed ‘this week’ as Matiang’i chairs crisis meeting

Fuel prices could be reduced this week as the government convenes a crisis meeting with stakeholders in the energy sector.

The meeting, to be chaired by Super Minister Fred Matiang’i, will also focus on the high cost of electricity in light of the findings contained in the report of the presidential task force on the review of Power Purchase Agreements (PPAs).

The stakeholders will discuss the challenges facing the sector and develop a roadmap to slash the prices that have pushed up the cost of living.

Details of the forum were revealed by Dr Matiang’i Sunday when he declared that the overhaul of scandal-ridden Kenya Power will top the agenda.

“In light of the changes at the Ministry of Energy announced by the President we shall this week start an aggressive programme to reduce the cost of fuel and electricity,” he said when he presided over a fundraiser in support of the Seventh-day Adventist Church in Isinya, Kajiado County.

The revelation comes barely a day after ODM leader Raila Odinga, while addressing a rally in Bungoma town, hinted that the government would reduce the cost of fuel this week.

Implement recommendations

Dr Matiang’i, who is also the chairman of the National Development and Implementation Committee, said he would ensure that the recommendations of the task force are implemented.

On Wednesday, President Kenyatta redeployed Energy CS Charles Keter and his PS Joseph Njoroge just hours after he received the report of the task force.

Mr Keter was moved to the Ministry of Devolution while Mr NJoroge was taken to the Ministry of Transport in changes that also saw others two others CSs moved.

The taskforce chaired by John Ngumi proposed an overhaul of Kenya Power and a review of the PPAs between the company and private firms.

Read: The rot at Kenya Power

The taskforce identified the vast differential between KenGen and IPP tariffs and electricity dispatch allocations and lack of proper demand forecasting and planning as some of issues contributing to losses at Kenya Power.

Bad laws

Kenyans are currently paying through the nose for electricity and fuel courtesy of bad laws and a conspiracy among cartels in the energy sector, according to investigations of the taskforce.

Kenya Power especially has been on the spot for continually making losses despite enjoying a monopoly in the distribution of electricity due to tender wars and the existence of expensive PPAs.

The President directed the Energy ministry to establish a path towards the reduction of the cost of electricity by over 33 per cent within four months.

The consequence of the proposed interventions is that a consumer who previously spent Sh500 per month on electricity shall by the end of December, 2021 pay Sh330 per month, a reduction will be achieved through the reduction of the consumer tariffs from an average of Sh24 per kilowatt hour to Sh16 per kilowatt hour.

Dr Matiang’i told the congregation that the government had identified the problem in the sector, which he refused to divulge, but promised to present at the forum.

“Together with my colleagues from the sector, I promise to attend and I will be open and candid in explaining what the challenges are and how we intend to solve them,” he said.

The Isinya funds drive was attended by CSs Eugene Wamalwa (Defence), Joe Mucheru (ICT), Solicitor General Kennedy Ogeto, PS Nelson Marwa and CASs Zack Kinuthia and David Osiany and a host of MPs.

The two CSs challenged the youth to take advantage of the mass voter registration, which starts today, to list in large numbers.