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Daily Nation : February 6th 2014
2 | National News DAILY NATION Thursday February 6, 2014 ELECTRICITY | Kenyans seeking to be on the national grid will pay Sh75,000 for a meter as subsidy is removed Consumers to pay more for power connection T BY ZEDDY SAMBU firstname.lastname@example.org he Energy ministry has ruled out subsidies for new power connections that it had earlier promised and will instead ask consumers to apply for loans to cover the promised funding. Energy Cabinet Secretary Davis Chirchir yesterday said the option of subsidies was no longer sustainable. “The African Development Bank and local banks have agreed to support new connections over a long time and in a more sustainable manner,” he said. Other financiers contributing to the Sh3.3 billion fund to be loaned to consumers include Equity and Jamii Bora banks. The partnership is expected We are creating an opportunity for customers to access soft loans. The government has said it will look for soft loans through bilateral donor support.” Ben Chumo, Kenya Power MD to bridge the gap between the old connection rate of Sh35,000 for a single meter and Sh45,000 for double meters to the Sh75,000 preferred by Kenya Power. “The loans will be partly recov- ered through the power bills each month,” Mr Chirchir said. Last July, Kenya Power raised the connection fees for single phase meters to Sh75,000 but a Cabinet decision directed the company to restore the old connection fees of Sh35,000 to make power connection affordable to more potential customers. The National Treasury then gave Kenya Power Sh2.7 billion as a temporary cushion to cover the next three months on the understanding that the remaining six months of the current financial year would be covered by a tariff adjustment of Sh1.10 per kilowatt hour. The new tariff took effect in December. A study to determine how much Kenya Power should charge for new connections is yet to be concluded. The study — commissioned by the Energy Regulatory Commission with funding from the French Development Agency — has since been taken over by the ministry but the findings are yet to be made public. The funding seeks to triple the current annual connection rate to one million new customers annually over a five-year period. Clusters of 50 customers will be pooled for connection with areas lying north of Nairobi targeted among the first beneficiaries. Kenya Power MD Ben Chumo said the firm sought external funding after the government stopped subsidising the cost of new installations. “We are creating an opportu- nity for customers to access soft loans. The government has said it will look for soft loans through bilateral donor support, which will then on-lend to us,” he said yesterday. “Government subsidies are not sustainable and is why government has opted to look for the funds through bilateral support.” THE NUMBERS Kenya Power raises charges for first time customers FILE I NATION Amount, in shillings, that consumers were paying for one meter connection. 35,000 45,000 The amount Kenya Power has been charging for two-meter first time connections. What consumers will be paying after government subsidy was removed. 75,000 Kenya Power employees replacing old poles in Eldoret Town last year. The company has increased the amount that consumers will be paying to be connected to the national grid. Its MD said the extra Sh40,000 can be provided as a soft loan to be paid monthly. Lawyers to face off in LSK polls today KENYA POLICE SERVICE EXTENSION OF TENDER CLOSING/OPENING TENDER NO. KPS/KPAW/2/2013 – 2014: SUPPLY AND DELIVERY OF A NEW TWIN TURBINE ENGINE HELICOPTER AND TENDER NO. KPS/KPAW/3/2013–2014: OVERHAUL OF Mi-17 HELICOPTERS Reference is made to the above tenders. Owing to numerous requests for clarifications from prospective bidders we wish to notify you that the Kenya Police Service has extended tender closing/opening date from Thursday 6th 2014 at 10.00 a.m. for 14 days until Wednesday, 19th February February, 2014 at 10.00 a.m. You should also extend the tender validity period of one hundred and fifty (150) days and the tender security validity period of one hundred and eighty (180) days accordingly from the new closing/ opening date of 19th February, 2014 to conform with the extension of the tender closing/opening. J. O. MAKORI FOR: DEPUTY INSPECTOR GENERAL BY NATION REPORTER Advocates are today ex- pected to elect new officials to head the Law Society of Kenya (LSK) in a battle that has been marked by unusually intense campaigns. The lawyers will elect 14 officials including the chairperson. The LSK secretariat yes- terday said 50 advocates have registered to contest for various positions. JSC race The 6,037 advocates will cast their ballot for the representative to the Judicial Service Commission (JSC), a post that has attracted four lawyers. The competition between city lawyer Ahmednasir Abdullahi and Prof Tom Ojienda, both seeking a mandate to sit in the powerful commission, has particularly been intense, with the two criss-crossing 25 LSK branches to campaign. Former LSK chairman Okong’o Omogeni and lawyer Kaburu Ndegwa are also in the JSC race. The election will be pre- sided over by the Independent Electoral and Boundaries Commission. Incumbent LSK chairman Eric Mutua, lawyers Ambrose Weda and Charles Kanjama are seeking their peers’ mandate to lead the vibrant body while Ms Faith Waigwa and Ms Lilian Omondi are competing for the vice-chairperson’s seat. Agenda Mr Mutua said his agenda was the implementation of the Constitution which he said needed a vibrant and respected person who can hold all institutions to account. “I will create an inspector- ate to prosecute fake lawyers, revamp committees and facilitate broad participation of members,” said Mr Weda. Mr Kanjama said he was seeking the leadership of the LSK to address legal and welfare issues affecting lawyers in the country. See editorial on Page 12 Since December 1, Kenya Power has been charging Sh15.51 per unit of electricity as a base tariff. Domestic power users pay Sh3.93 for the first 50 units of electricity consumed or nearly double the previous rate of two shillings. For those consuming between 50 and 1,500 units, the cost per unit went up by Sh2.20 to Sh10.30, while those consuming higher amounts pay Sh20.50 per kilowatt hour (Kwh) up from Sh18.57. Subsidising connectivity “Kenya Power has been subsi- dising connectivity using its own resources to plug the gap between the actual cost of new connection and the cost set in 2004. This is at the expense of other critical projects such as improvement of quality of power and reduction of blackouts,” said Mr Chirchir in an interview with the Nation. He spoke on the sidelines of a meeting which brought together ministry officials, industry and county executives to chart the future of Kenya’s oil exploration sector. International investors are ex- pected to develop a crude pipeline linking the Turkana oil fields and the port of Lamu ahead of possible commercial production in the 2016/17 financial year.
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February 7th 2014