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{
    "id": 1398870,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1398870/?format=api",
    "text_counter": 225,
    "type": "speech",
    "speaker_name": "Hon. Davis Chirchir",
    "speaker_title": "The Cabinet Secretary for Energy and Petroleum",
    "speaker": null,
    "content": "Mr. Temporary Speaker, Sir, allow me at this point to point to the fact that the energy sector in Kenya is almost fully unbundled to the extent that the generation, transmission, and the off taker operate independently with their balance sheet and systems, KETRACO today is still supported on the government balance sheet. Therefore, we are working very quickly employing the Public Private Partnership (PPP) framework to see how KETRACO, with the limited government resources, is able to work through the PPP framework to attract private investors to build a transmission system, remove the constraints on the overloaded circuits and be able to forestall this challenge. Several circuits today are undergoing evaluation through the PPP framework so that KETRACO can leverage private investment and be able to forestall some of these challenges. Some of the actions are that the Ministry is addressing the root cause of grid instability and is formulating lasting solutions to comprehensively address the weaknesses. One of them is what I just mentioned which is through the PPP framework. Further, the Government, together with our development partners, is working on a grid reinforcement plan to ensure the frequent blackouts experienced lately do not become a persistent matter. The government is committed to having a reliable, sustainable, and resilient national grid system, and to an extent where, as I said, generation seems to be doing well. The off taking through Kenya Power Company and what we are doing to strengthen their balance sheet, you have lately realized that we have allowed Kenya Power minority shareholders to participate in the structure of corporate governance by bringing in four independent directors to represent the interest of the 49.9 percent shares, which are routed through the Nairobi Stock Exchange. The Government side today is represented by five members. Those are some of the reforms which we are working through with Kenya Power to address governance issues and address the power losses from the current 22 per cent. We have given ourselves 16 per cent in the next three years to address the issue of the balance sheet so that the Kenya Power balance sheet can be strong enough to go out there and do what it needs to do for the country in assuring us of reliable, sustainable, resilient on the national grid to what I have said in the PPP framework. This is so that we do not have to only come to Parliament to look for resources to build the infrastructure nationally. It can be built by the private sector, leveraging on the electrons that flow on that network. The way we toll our road highways, we should be able to toll the lines and get return on investment on the PPP framework. I thank you."
}