Serrari Group

In a significant move aimed at reshaping Kenya’s energy landscape, Members of Parliament (MPs) are pushing forward with a proposal to dismantle the monopoly held by Kenya Power. The plan, gaining momentum, seeks to introduce Independent Power Producers (IPPs) into the market, allowing them to directly sell tokens to consumers. The primary goals are to lower the cost of electricity and enhance competition within the sector.

At present, the National Assembly’s Energy Committee is actively engaged in Mombasa, working on a comprehensive report that outlines strategies to address the high cost of electricity prevalent in the country.

According to insiders, the core objective of this proposal is to empower consumers by providing them with choices regarding their energy sources. Under this plan, IPPs would have a direct line of communication with customers, enabling them to establish their billing systems. This move is anticipated to foster a competitive environment, encouraging better pricing and service offerings.

If approved, consumers would have the liberty to decide between procuring electricity from Kenya Power or IPPs, selecting the option that aligns with their preferences and budget. Simultaneously, the committee is scrutinizing the possibility of terminating costly contracts between Kenya Power and IPPs, which currently incur an annual expense of Sh23 billion.

The Energy and Petroleum Regulatory Authority (EPRA) is contributing to this transformation by crafting regulations that facilitate direct power sales. This includes introducing a specialized licensing framework tailored specifically for IPPs, ensuring fairness and competition in the sector.

Earlier in the year, IPPs initiated a proposal to directly sell electricity to consumers, thereby challenging Kenya Power’s monopoly. The proposal is grounded in the Energy Act of 2019, which promotes a competitive energy market.

IPPs argue that the existing model, where they sell power at wholesale rates to Kenya Power, only to repurchase it at retail prices, hampers innovation and limits their ability to offer better deals directly to end consumers.

The fate of this proposal rests with the MPs, who will discuss it when the House resumes sessions on September 26. If adopted, consumers could anticipate a transformed energy landscape, marked by choice, affordability, and healthy competition.

Photo Source : Google

By: Montel Kamau

Serrari Financial Analyst

30th August, 2023

Share this article:
Article and News Disclaimer

The information provided on is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

In no event will be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.

The articles, news, and information presented on reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.

The content on may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.

Every effort is made to keep the website up and running smoothly. However, takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.

Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.

By using, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website., reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.

Serrari Group 2023