Thursday, October 31, 2024 – The National Assembly has rejected a plea by the Ministry of Energy and Petroleum CS Opiyo Wandayi to lift the moratorium on Power Purchase Agreements (PPAs), insisting Kenyans must be protected first.
Parliament cited concerns
over inadequate safeguards to protect taxpayers from potential exploitation by
foreign investors.
“Members of Parliament have
rejected a proposal from the Ministry of Energy and Petroleum to lift the
moratorium on Power Purchase Agreements (PPAs), citing concerns over inadequate
safeguards to protect taxpayers from potential exploitation by private
investors,” read part of a statement.
The Ministry had approached
Parliament with a request to lift the moratorium specifically on coal-fired
power plants, stressing the urgency of expanding power sources to meet Kenya’s
increasing energy needs.
According to the Ministry,
anticipated growth in power consumption necessitates a diversification of
sources, with coal plants positioned as a stable and cost-effective complement
to existing hydroelectric power.
The MPs who in their oversight
role chair key committees - including departmental, audit, appropriations, and
select committees strongly objected to the ministry’s plea to lift the
moratorium.
The legislators insisted that
the Ministry must first implement stringent measures to prevent projects from
disproportionately favoring investors at the expense of public interest
They maintained that no
relaxation of the moratorium should proceed until sufficient protections are
established to ensure that any new agreements prioritize taxpayer welfare and
national interests.
The Kenyan DAILY POST
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