Private investors are set to play a vital role in Kenya's electricity sector, as the Energy and Petroleum Regulatory Authority (EPRA) unveils new regulations paving the way for their participation in electricity distribution across the country.

This move comes in response to a petition by Independent Power Producers (IPPs) seeking open access to power transmission and distribution.

The draft Energy (Electricity Market, Bulk Supply, and Open Market) Regulations 2024, currently awaiting gazettement, will encompass the entire electricity value chain – from generation and import to export, transmission, distribution, and retail.

According to EPRA Director General Daniel Kiptoo Bargoria, these regulations hold the key to a brighter future for Kenya's power sector.

"It introduces the wheeling of electricity which holds the potential to unlock new investment opportunities, enhance grid reliability, and ultimately deliver greater value to customers," he stated.

Read More

  1. Kenyans breathe a sigh of relief as MPs block controversial energy levy increase
  2. Fuel prices remain steady as EPRA reports mixed trends in landing costs
  3. Reprieve as EPRA announces significant drop in fuel pump prices in latest review

"Customers can enjoy lower power bills, less frequent outages and more choices on electric suppliers," Bargoria elaborated, highlighting the potential benefits for Kenyans.

The regulations will also provide a roadmap for the development of the electricity market structure, ensuring non-discriminatory access for licensees and eligible customers.

EPRA, in its statement, emphasized its commitment to fair pricing. "The Authority will promote fair pricing by reviewing and approving proposed tariffs or any service to be charged by licensees," it stated.

This shift towards private sector involvement in electricity distribution is a significant step towards a more efficient and competitive electricity market in Kenya.

With the potential for increased investment, improved grid reliability, and ultimately, lower costs and more choices for consumers, Kenyans can look forward to a brighter, more reliable future when it comes to their access to electricity.