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State renews push to review key power deals to cut costs

THE STANDARD BUSINESS NEWS Kenya power staff work on power line in Nairobi. (File, Standard) The government is in yet another attempt to review the contracts that power producers have signed with Kenya Power as it tries to tame the high cost of electricity. The Energy ministry yesterday set up a team that will review all the existing Power Purchase Agreements (PPAs) that the power utility firm KPLC signed with independent power producers. One of the key tasks for the committee is to talk to power producers and renegotiate the PPAs. The PPAs contain details on how much the generators are paid by Kenya Power for the electricity sold to the firm.

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