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{
    "id": 1195844,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1195844/?format=api",
    "text_counter": 347,
    "type": "speech",
    "speaker_name": "Sen. Wamatinga",
    "speaker_title": "",
    "speaker": {
        "id": 13582,
        "legal_name": "Wahome Wamatinga",
        "slug": "wahome-wamatinga"
    },
    "content": "The contracts signed by IPPs have an average length of 23 and 27 years. A majority of the IPPs expire in 2030. There are IPP contracts that will expire in January, 2043. This is so sad. KPLC has to pay for what has been generated, regardless of whether it has been consumed or not. This is a very sad occurrence, indeed. My Committee intends to study the report of the Presidential Taskforce on IPPs. The report was presented to His Excellency the President last year and provides further guidance to this august House. Turkana, Marsabit, Garissa, Wajir and Mandera counties are not connected to the national grid. These counties use generators that are powered by diesel for electricity. We have IPPs in these counties. In Marsabit County, we have wind power which have not been connected to the national grid. Mr. Temporary Speaker, Sir, 26.94 per cent of prepaid bills accounts for fuel energy charge. This means that for every Kshs100, Kshs26.94 goes to fuel energy charge. As we look at the cost of production, we also have to look at the entire value chain. No matter how much cheap electricity is generated, it will do people no good if it does not get to the end user on time and reliably. The issue of faulty transformers has continued to dodge KPLC. Just recently, the Cabinet Secretary (CS) for the Ministry of Energy directed KPLC to repair and reinstall 10,000 faulty transformers that were lying in a yard in Roysambu. It is very sad that during the procurement process, the sub-standard transformers were ordered all in the name of making money or giving kickbacks. Faulty transformers have been the cause of prolonged power blackouts in many counties. In Nandi County alone, 800 transformers are faulty. This has caused reduced productivity in companies and increased insecurity. As a Committee, we wish to tell KPLC to ensure that when procuring transformers, they should be ordered directly from reputable manufacturers. Additionally, those involved in the procurement process for any substandard equipment should be interdicted and charged in a court of law. Mr. Temporary Speaker, Sir, I also have to mention that KPLC, as the only caretaker of power in the country, continues to make losses on a commodity that they alone sell. KPLC operates as a monopoly and commonsense would require that they make extreme profits. It is very clear that there are governance and accountability issues in KPLC. Audited accounts by the Auditor General for Financial Year ended 30th June, 2021 revealed that KPLC current liabilities are over Kshs116 trillion, which is far above its current assets of Kshs49 billion. This is a difference of about Kshs66 trillion. An impairment loss of Kshs205 million on stalled projects was incurred. This was in respect to projects that were part of the contract sum. It was paid yet no activities have transpired in those projects for the last three years. A total of Kshs159 million was related to fraudulent payments to contractors and which are subject to court cases. I am happy that KPLC has now taken full responsibility of selling pre-paid token from vendors, as this will curb corruption. As a way forward, from the above, it is clear that a radical surgery is required in the energy sector. To begin with IPPs should be incentivised to switch to solar as a mode"
}