President Ruto’s masterplan to totally lower electricity costs.
President Ruto’s masterplan to totally lower electricity costs; During a cabinet meeting held at statehouse on Tuesday, the head of state expressed his optimism in lowering the cost of living.
The cabinet resolved,”In line with the Kenya Kwanza Bottom-Up Economic Transformation Agenda, the composition of Kenya Power’s Board will be adjusted to reflect its shareholding.”
Consequently, the National Treasury and the Ministry of Energy on Wednesday, May 17, rolled out a framework that would make the energy transmission company start recording positive growth.
The main objective of this framework is offloading some of Kenya Power’s assets and restructuring its board.
Offloading will mean that Kenya Power will sell its power transmission lines to Kenya Electricity Transmission Company (KETRACO), which will be facilitated by the national government.
The sale of the transmission lines will be at Ksh20 billion. KETRACO will also buy Ksh5.3 billion from energy-generating company KenGen.
Upon offloading, Kenya Power will reduce the debts they owe the suppliers by Ksh19 billion, and the outstanding loans will reduce by Ksh20 billion.
The statement read,”This was in line with Ruto’s promise that, “The new plan focuses on enhancing the company’s financial sustainability particularly by addressing loan balances and the liquidity gap.”
As of now, the government has approximately 51 per cent of shares in Kenya Power, while the rest is owned by the private sector.
Trade CS expressed,”Government of Kenya wants to ensure that we exit the enterprise space and let the private sector grow. What we are doing is providing an environment conducive for investment.”