Nyoro calls for power sector shake-up to cut electricity costs

Kiharu MP Ndindi Nyoro has called for sweeping reforms in the power sector, including allowing more private electricity producers to sell power to the national grid, arguing that increased competition would lower costs and create jobs.

Nyoro said Kenya could not achieve meaningful economic growth without addressing the high cost of electricity, which he identified as a major impediment to investment and job creation.

“We cannot talk about economic growth without talking about the cost of power,” Nyoro said.

He proposed opening up the electricity market to more producers, saying companies generating power for commercial use should be given access to the national grid and allowed to sell their electricity.

“If a company produces power for use and has access to the grid to sell it, they must be allowed to sell it to the national grid,” he said.

Nyoro argued that having more electricity producers would reduce the country’s dependence on a few players and help prevent power-related crises.

“We should have as many producers of energy as possible because our dependence on a few producers is what brings about crises,” he said.

He further called for greater private investment in the power sector, arguing that Kenya needed to leverage its existing assets to raise capital for additional electricity generation.

Nyoro cited Kenya Power as an example, saying the company had an estimated value of about Sh75 billion despite handling electricity worth significantly more. He argued that the government should explore ways of unlocking the value of such assets.

He said proceeds from unlocking the value of public assets could be channelled into expanding electricity generation, helping increase supply while reducing pressure on consumers.

“The more energy we produce, the more affordable and reliable power will become,” Nyoro said.

The MP linked the reforms to the wider need to create employment opportunities for Kenyans, particularly young people, saying economic growth must translate into jobs.

He also identified tourism as another sector with the potential to generate millions of jobs if Kenya increased international arrivals.

Nyoro proposed that Kenya target 10 million international visitors, arguing that the sector could create millions of direct and indirect employment opportunities through hotels, transport, entertainment and the creative industry.

He said Kenya had the natural attractions and infrastructure to attract more visitors but needed to do more to expand its share of the global tourism market.

Nyoro also touched on the banking sector, calling for policies that would strengthen local financial institutions and enable them to compete effectively with international players.

He questioned the rationale of allowing foreign investors to take over profitable Kenyan banks, arguing that the country should instead create an environment that allows local institutions to grow and compete for capital.