Some of the stakeholders present during a meeting to deliberate on proposals for reducing energy tariffs. Photo: DPCS.

Government Accelerates Energy Reforms to Lower Cost of Doing Business

BY DPCS

The Office of the Deputy President has convened a high-level stakeholder meeting to deliberate on proposals for reducing energy tariffs as a core intervention to lower the cost of doing business in Kenya.

The meeting reviewed a report prepared by a Technical Working Group (TWG) drawn from key actors in the energy sector.

Discussions centred on practical measures to deliver tariff relief, including optimisation of Time of Use (ToU) tariffs, reduction of power system losses through accelerated infrastructure upgrades, and the introduction of concessional energy rates for MSMEs and Jua Kali clusters.

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The Office of the Deputy President has convened a high-level stakeholder meeting to deliberate on proposals for reducing energy tariffs. Photo: DPCS.

As part of the immediate actions agreed upon, the meeting resolved to remove the 6 per cent growth factor that had previously been set as a precondition for accessing ToU tariff benefits.

The meeting also committed to the development of a clear roadmap for reducing power tariffs within Special Economic Zones.

Going forward, the TWG will be reconstituted to incorporate broader private sector representation and tasked with developing a comprehensive, target-driven action plan structured around short-, medium-, and long-term interventions.

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The government is set to remove the 6 per cent growth factor that had previously been set as a precondition for accessing ToU tariff benefits.

These efforts form part of the Government’s wider strategy to deliver the Bottom-Up Economic Transformation Agenda (BETA) and strengthen Kenya’s competitiveness by easing the cost of energy for productive sectors.

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