President Kibaki has announced that Sh750 million has been set aside in this year’s financial plan for the transmission corporation which will take over some key roles of Kenya Power and Lighting Company.
The establishment of two new parastatals: National Transmission Company and Geothermal Development Company, was the beginning of the energy problem solving process and the recent plunge of Sh750 million is another effort in the right direction.
Addressing a National Energy Conference in Nairobi, the President said that the Geothermal Development Company will be set up in the next two months. ‘There is an urgent need to reduce high system losses and low voltages. Indeed, the current poor quality of power is largely due to lack of critical investments by KPLC over the years,’ the President said. He also said Sh4.5 billion had been allocated for a 140 megawatt geothermal plant in Olkaria. He urged the private sector to invest in a dry cargo handling terminal for coal and other products and a 300 megawatt coal-fired plant in Mombasa.
Reports say that the Energy and Finance ministers have been told to fast-track sourcing of Sh14.8 billion for the building of a parallel oil pipeline from Nairobi to Eldoret to ease supply to western Kenya. The availability of adequate and reliable electricity at affordable tariffs is crucial to economic growth and improvement of lives, the president added.
Currently, KenGen is in-charge of power generation, while KPLC has been supplying and selling the product.