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{
"id": 1195842,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1195842/?format=api",
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"type": "speech",
"speaker_name": "Sen. Wamatinga",
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"id": 13582,
"legal_name": "Wahome Wamatinga",
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"content": "Thank you, Mr. Deputy Speaker, Sir. I rise pursuant to Standing Order No.56 (1) (a), to make a Statement relating to matters in which the Committee on Energy is responsible, the High Cost of Energy in the Country. Mr. Temporary Speaker, Sir, let me start by thanking Members of the Committee on Energy for unanimously electing me the Chairperson. The cost of energy is a fundamental driver in any economy and society. In Kenya, that cost has increased significantly affecting the cost of living to the negative. Farmers are unable to plough land using tractors, irrigate their crops because of the high cost of fuel and electricity. As a country, if we want to industrialise and attract international manufacturing firms, then the cost of power has to be lowered. If we follow the migratory patterns of international manufacturing firms, you will see that as the cost of production increased in North America and Europe, the companies moved to China, India and Africa. The current average cost of electricity per unit is Kshs25. This means that for Kshs1000 you can only get 40 units or 4 units for Kshs100. Energy is a factor of production. For us to spur our manufacturing and cottage industries as envisaged in the establishment of the Special Economic Zones in Naivasha, Dongo Kundu and other parts of the country, we need to ensure that the cost of energy is lowered. My Committee is planning to engage the relevant stakeholders in the energy sector to ensure that this matter is addressed amicably. Mr. Temporary Speaker, Sir, the total installed capacity with the inclusion of off- grid power is 2949 megawatts. The energy mixes as follows; geothermal accounts for 863.1 megawatts; hydro 838 megawatts; wind 435 megawatts; solar, unfortunately only 90 megawatts; thermal, sadly 720 megawatts; and, off-grid power is 34.31 megawatts The above mix indicates that 75 per cent of electricity is done through renewable sources. Only 24 per cent is through thermal or diesel. It is evident that renewable sources of power dominate our energy mix and electricity should, therefore, be cheaper. According to the audited accounts ending Financial Year June, 2021 Kenya Electricity Generating Company PLC (KenGen) supplied a 8,443 gigawatt hours, which makes 70 per cent and was paid Kshs44,805,290,000. That is 44 per cent. On the other hand, Independent Power Producers (IPPs) supplied 3,000 gigawatt hours. That is about 30 per cent of the total power and were paid over Kshs56 billion. Mr. Temporary Speaker, Sir, the analysis shows that if KenGen had supplied 100 per cent of the power consumed, the amount paid would have been Kshs64,007,414,285. This would have been a net savings of Kshs37,143,044,715 to Kenya Power and Lighting Company (KPLC). KenGen charges only Kshs5.41 per unit. IPPs charges between Kshs9.89 to Kshs173.08 per unit. As a Committee, we note that the cost of electricity charged by IPP is over 30 times compared to what KenGen charges. The above analysis shows that if KenGen supplied 100 per cent of power consumed, the amount paid would have been Kshs64 billion. This could have been a net saving of Kshs34 billion which is enough to construct 37 Level 4 hospitals."
}