Molo MP Kimani Kuria says the government will relook into KPLC contracts awarded to political loyalists of the last regime, saying the poorly negotiated contracts have benefited only a few individuals at the top at the expense of poor Kenyans.
According to the legislator who is also the Chairperson of the Finance and National Planning Committee, KPLC has no option but to adhere to the contracts that are forcing the power distributor to purchase electricity at exorbitant costs.
“The most significant problem we have is the cost at which Kenya Power is acquiring this electricity from independent power producers that were procured without due consideration of citizens who consume electricity. ”
”The contracts do force Kenya Power to purchase electricity from the independent power producers whether they like it or not. And it is purchased it at exorbitant prices,” the MP said, while explaining how KPLC was not able to deviate from the long-term contracts that were signed during President Uhuru’s tenure.
“It was time to reward political supporters of the previous government. In the contracts, the independent power producers were allowed to sell electricity at exorbitant pre-determined prices to Kenya Power,” noted Kuria.
The MP explained that Kenya Power had very limited options during the period when they signed contracts with independent power producers in the country.
“The price at which Kenya power buys power from independent power producers was poorly negotiated. We allowed anybody who then would purport to produce power to sell it at a pre-determined price to Kenya Power. That is why it becoming very expensive for Kenya Power to retail that electricity to dear Kenyans,” Kuria explained.
The Chairman, Finance and National Planning Committee of the National Assembly also revealed that MPs are in the process of looking into the taxes that have also led to the high cost of power in the country.
“We are also re-looking at the tax component of deals in which Kenya Power was involved so that we may review them,” Kuria explained.