The National Treasury has revealed a comprehensive strategy to reduce electricity prices in the country. Njuguna Ndung’u, the Treasury Cabinet Secretary, emphasized the government’s commitment to enhancing access to affordable and efficient energy through innovative measures.

Ndung’u highlighted, “The urgency to lower electricity prices is crucial for fostering socioeconomic transformation in line with President William Ruto’s Bottom-Up Agenda and Vision 2030.” The strategic plan, outlined in the Medium-Term 2024 Budget Policy Statement, includes key initiatives such as leveraging Renewable Energy Feed-in Tariffs (REFIT), engaging independent power producers, investing in geothermal energy, and expanding rural electrification.

The government aims not only to lower electricity costs but also to ensure the sustainability and competitiveness of the energy sector. Despite Kenya’s growing generation capacity, electricity prices have remained relatively high compared to neighboring countries in East Africa.

The REFIT program championed by the Ruto administration promotes renewable energy generation, allowing producers to sell electricity to the government at predetermined rates. Additionally, the lifting of the moratorium on Power Purchase Agreements is set to bolster efforts to drive down electricity prices.

The Treasury affirmed, “Kenya’s vast renewable energy potential, including wind, solar, and geothermal power, presents a golden opportunity to reduce reliance on costly fossil fuels and decrease electricity expenses.”