Francis Atwoli Asks MPs To Cancel Power Purchase Agreements With IPPs, Tame Rising Electricity Costs

• Around 28% of Kenya’s installed capacity is owned and operated by IPPs, while 72% is supplied by state-owned Kenya Electricity Generating Company (KenGen)
• Independent Power Producers (IPPs) account for 25% of Kenya Power’s total output but rake in 47% of power purchase costs
• Central Organisation of Trade Unions (COTU) Secretary-General Francis Atwoli accused IPPs of fleecing Kenyans

Central Organisation of Trade Unions (COTU) secretary-general Francis Atwoli has asked Members of Parliament (MPs) to cancel all power purchase agreements with Independent Power Producers (IPPs).

Atwoli appeared before the National Assembly Departmental Committee on Energy on Thursday, July 27, where he submitted COTU's proposals for reducing the high cost of electricity in Kenya.

The trade unionist claimed IPPs were fleecing Kenyans, so he wants KenGen and other state parastatals to handle electricity generation.

"I called upon the government of Kenya to tame Independent Power Producers (IPPs) by revoking all Power Purchasing Agreements (PPAs) that have been signed with various IPPs and instead engage KenGen or establish other state parastatals to handle electricity generation and supply," Atwoli tweeted.

Francis Atwoli threatens to expose gov't officials

The long-serving COTU boss threatened to expose senior government officials who operate IPPs.

He accused them of selling electricity to the Kenya Power and Lighting Company (KPLC) at exorbitant costs.

"We can't have some few people just sitting somewhere and deciding the prices they will sell to Kenyans. They are money makers; they sell nothing but get billions," he fumed.

Sosian Energy supplies power to KPLC

In June, TUKO.co.ke reported Sosian Energy associated with the wealthy Moi family started supplying power to Kenya's national grid.

The energy project development company supplied 22 megawatts of electricity as the push for renewable energy gathers momentum.

Besides Sosian Energy, Ormat Technologies and Quantum Power were other IPPs awarded tenders by the state to build geothermal plants.

IPPs to cut links with KPLC

Kenya Power could be subjected to tight competition from IPPs if the Energy Act 2019 is implemented.

The IPPs want parliament to allow them to distribute electricity directly to consumers, which could end Kenya Power's monopoly.

Through their union - the Electricity Sector Association of Kenya (ESAK) - the IPPs called for fresh regulations in power generation, operation efficiencies, supply and support.