Kenya Power technicians fix power lines in Iten, Elgeyo-Marakwet County. Statistics indicate that 2.1 million people have been added on the grid from March 2013. PHOTO | FILE
What you need to know:
Disputes persist as the country shifts from hydro and thermal plants to geothermal, wind and solar energy.
When Electricity Transmission Company (Ketraco) decided to sue some 561 Kajiado landowners last week, its executives were walking down a familiar path.
Investors and government agencies working on multi-million shilling energy projects have found themselves in the eye of a wayleave storm.
Residents have generally rejected compensation offers and at times resorted to civil protests that have grounded work at the sites.
Sometime in September last year, an insider at the Kinangop Wind Park (KWP) called the Business Daily to warn that “frustrated investors” would soon walk out of the Sh15 billion project.
“I am serious about this,” the caller said. “If politicians and activists do not stop inciting residents against the project within 30 days, you can count us out. We are not prepared to move in circles forever.”
Two weeks after the morning call, the firm’s publicists prepared a press release announcing withdrawal from the 60MW project. The statement would however be embargoed hours later, reportedly after Energy and Petroleum ministry officials intervened.
The script is the same as Ketraco’s. A number of Nyandarua residents have rejected compensation offers, accusing the project’s promoters of scheming to take their land forcefully and subjecting the environment to degradation.
The three-month talks involving residents, county officers and national government officials have apparently failed to resolve the matter. Last week, KWP finally announced its exit from the area.
“The initial civil commotion has not been resolved while further incidents have occurred, creating an unsafe environment for the team to implement the project,” KWP chief executive James Wakaba said in a statement issued last week.
Ketraco, on the other hand, appears battle-hardened. It has been embroiled in a wayleave standoff with Kajiado residents for more than a year.
Access sought in Kajiado is crucial for the construction of a 4000km line to transport cheaper power to be generated in Mombasa to other parts of the country.
The agency says equipment moved to Isinya last year to start the work on the project has been idle most of the time.
In an earlier interview, the Ketraco head of technical services John Mativo said residents had tried every trick to block the Sh130 billion project even after the agency offered to pay them 10 per cent above the prices of land as assessed by independent valuers.
From Isinya in Kajiado, to Kedong in Nakuru, Kinangop in Nyandarua and Tigania in Meru County, land dispute cases have rocked energy projects as the country begins to shift from hydro and thermal plants to geothermal, wind and solar energy.
The Presidential Delivery Unit (PDU), a team charged with timely delivery of electoral promises of the ruling Jubilee Coalition, has turned its arsenal on devolved governments, accusing governors of falling into a trap laid by lobby groups.
“Take an example of Loiyangalani where 310MW is coming on stream in January from Turkana Wind Power project but Nyandarua County has denied us 90 kilometres of wayleave,” said head of PDU Waita Nzioka.
“We need that wayleave to supply every governor (county) with that power.” He added: “If I look at the power generated at Olkaria IV, we have 280 megawatts that is sitting in Menengai because Kajiado County has refused to grant us wayleave to take that power to Makueni and to Mombasa.”
State House believes governors have the key required to unlock the current stalemate. Mr Nzioka said in a presentation shared with county bosses during the recent Governors Summit: “We need you to give us access, we need you to talk to your constituents, we need you to help facilitate the conveyance of this power because the generation capacity will happen but we must be able to get it to all Kenyans that require this energy.”
Investors have frequently accused lobby groups and politicians of inciting residents to demand higher rates for their land whenever they begin to work on public projects.
They say campaigners have invariably raised human rights and environmental concerns to discredit their projects.
Private investors see protests targeting their investments as smoke screens used to mask schemes aimed at scandalising and embarrassing international financiers out of projects. Mr Nzioka has however taken the battle to the county bosses.
“I beg your indulgence because the wayleave issue is blocking our delivery schedule. Tell us how we can help deal with compensation issues, tell us how we can deal with educating the public on the health concerns they may have on wind turbines,” he said.
By turning focus on governors, State House is apparently hoping it will win hearts fairly fast. Through various investment forums, a number of counties are seeking to attract industries to rural areas. Such firms, once established, will demand cheaper power from county bosses.
In the meantime, the wayleave storm is spreading rapidly to nearly all the areas that have potential to either generate power or host transmission lines.
In Meru, said PDU, land prices doubled in three months — and have continued to rise “because we now have a 50 megawatts wind project planned there.”
“It’s an artificial issue that has been raised by mismanaged expectations on the ground. It threatens our regional competitiveness,” said Mr Nzioka.
“If we are not able to generate this power on time and effectively, it will not matter whether we have 2,000 megawatts or 5,000.”
President Uhuru Kenyatta’s administration has only added 675MW out of the 5,000MW pledged to Kenyans after election.
The increased production is part of its campaign to bring power costs down to between $0.13 and $0.14 per unit by 2017, enabling Kenya to compete fairly for foreign direct investments with Egypt, South Africa and Ethiopia.
“Ketraco should be allowed to do its work. If we cannot evacuate power from Lamu County for Amu Power today, who are struggling to deal with stakeholder issues, we will not be able to contribute to the overall reduction of power costs in this country,” said Mr Nzioka.
State House statistics indicate that 2.1 million people have been added on the grid from March 2013. Mr Kenyatta’s administration projects a 70 per cent penetration rate by 2017.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
