Kenya will from next year exploit cheaper sources of power to meet rising demand and also reduce overreliance on thermal and expensive energy sources.

“We expect fuel cost adjustment to go below Sh5 per kilowatt hour (kwh) from the current Sh6.54/kwh,” says Energy permanent secretary Patrick Nyoike.

Kenya Power and Lighting Company (KPLC) has reported a 5.8 per cent growth in demand for power over the past year. Peak demand now stands at a maximum of 1,044 megawatts (MW) compared to 987 MW last year.  Effective generation capacity stands at 1,254 MW leaving a reserve capacity margin of 20%.

In the next six months, demand for power is projected to grow to 1,172 MW against an effective generation capacity of 1,384 MW and a reserve margin of 18%.

Plans are underway to establish a second state owned transmission utility next year. The proposed Kenya Power Transmission Company (KPTC), will take over the transmission function from KPLC, leaving the company with the role of distribution.