The de-escalation, by the current Government, of the power tariff reductions that were effected in January 2022, while extremely unpopular, could be positive for future private sector investments in the energy sector.
Private sector investments in the energy sector are underpinned by Power Purchase Agreements (PPAs), which, by definition, are the primary contract between an "offtaker" (often a state-owned electricity utility, in jurisdictions where the power sector is largely state operated such as Kenya) and a privately-owned power producer.
