Local firms earn US $155.2m on supplies to Kenya Power

Local firms in Kenya have earned themselves US $155.2m on supplies to Kenya Power. They are some of the biggest beneficiaries of the projects of Kenya Power in the year to June. Kenya Power embarked on a deliberate drive to contract local suppliers and support Kenya’s manufacturing industry.

During the year to June, local manufacturers supplied 70% of the materials needed in the company’s projects across the country. This is above the government’s requirement for a minimum of 40% local procurement for state-owned institutions. However, it is also below the 80% target that Kenya Power targets.

According to General Manager for Customer Service Peter Mwichigi the move to engage local manufacturers will grow the economy. This, according to him, is because there are more opportunities for Kenya Power to work with local manufacturers. That is even as the company continues to focus on its medium-term strategy. The strategy focuses on infrastructure development. This is mainly on effective network management as well as customer focus and loss reduction for efficiency.

The company is currently implementing the Last Mile Connectivity Project (LMCP). The project seeks to connect 940,900 households in rural and low-income areas to the national grid.

Also read: Kenya Power signs US $300m connectivity financing deal

Night tarrifs

Meanwhile, Kenya is planning to cut power tariffs by up to a third for large businesses and manufacturers that shift their operations to late night hours. This is effective from next month. The Energy Regulatory Commission (ERC) said it would from December 1 offer discounted tariffs for commercial and industrial power users who operate from 11pm to 5am.

The energy charge billed by Kenya Power for commercial consumers metered at above 11 kilovolts (kV) will thus decrease by a third to Sh5 per kilowatt hour (kWh).

The plan, which has been on the cards for a decade, was arrived at on Monday after ministry officials met Kenya Association of Manufacturers and Kenya Private Sector Alliance.

 

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