MPs approve Sh5 billion to support power transmissionTuesday March 28 2023
Parliament has approved Sh5 billion to support Kenya Power and other players in electricity transmission as the country faces a growing threat from ageing infrastructure.
Kenya Power will receive Sh500 million from the power transmission and distribution vote.
“Additional Sh500 million (development) to help KPLC financial position,” the Budget and Appropriations Committee (BAC) says in a report on the 2023/24 Budget Policy Statement that was approved by Parliament.
Read: Treasury slashes Kenya Power bailout by 75pc after recovery
The allocation comes two months after the Treasury cut Kenya Power bailout by nearly three-quarters on the back of improving revenue and the expiry of the 15 percent tariff cut that will ease liquidity challenges.
Disclosures to the IMF show the State-controlled utility will get Sh2.35 billion from taxpayers to partly offset the liquidity gap emanating from the January 2022 electricity tariff reduction compared with Sh9.05 billion in the year ended June 2021.
Read: Kenya Power gets Sh25bn loans repayment reprieve
The electricity distributor estimates annual loss as a result of a tariff cut ordered by the previous regime of President Uhuru Kenyatta to ease living costs for households and businesses at Sh26.3 billion.
The 15 percent drop in power tariff ended in December occasioning higher bills from January.