Unveiling Key Players in High Electricity Costs: Including Mp Shahbal Suleiman
The individuals in charge of companies suspected to be responsible for the elevated electricity prices in the nation have had their roles as directors and beneficiaries revealed.
The effort by the National Assembly energy committee to encourage Independent Power Producers (IPPs) to lower their prices has encountered a setback, as the IPPs have refused to comply.
The independent power producers (IPPs) charge Kenya Power five times more for a kilowatt of electricity compared to what they receive from KenGen.
On Thursday, Kenneth Gathuma, the Director General of Business Registration Services (BRS), informed Members of Parliament that companies were exploiting a legal gap that mandates only companies established post-2017 to furnish proof of their registration status. This exploit is being utilized to maintain anonymity among shareholders.
More than a year after the government initiated discussions with Independent Power Producers (IPPs), there has been progress in reevaluating the power purchasing agreement between them and Kenya Power. The aim is to reduce the expense of electricity.
Hardly any noticeable advancement has occurred, as the IPPs are currently requesting the government to eliminate all taxes on HF4 oil utilized by the corporations, should they need to reevaluate the prices in a downward manner.
Presently, the IPPS are vending one kilowatt of power to the power transmission firm at a rate of Ksh.25 per unit, which is five times higher than the price at which KenGen is vending the identical unit.
Mr. Gathuma, who presented himself to the energy committee, unveiled the identities of the directors, shareholders, and beneficiaries of these firms. These entities had been exploiting a legal gap to stay anonymous and persist in burdening Kenyan citizens with exorbitant electricity expenses.
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A few notable individuals from the area have been revealed as beneficiaries or managers of the Independent Power Producers (IPPs). Among them is Suleiman Shahbal, a businessman and East African Legislative Assembly (EALA) member hailing from Mombasa. He shares directorship with Francis Koome Njogu.
Additional local directors who are collaborating with foreign individuals to capitalize on the substantial advantages stemming from elevated electricity expenses encompass Christopher Mugo Kibati and Keneth Ndegwa Kamaitha. They have formed partnerships with two Israelis and one American, collectively engaging in ventures within the energy industry.
Some additional individuals include George Kagunyi Njenga, Kenneth Namunje Onyango, and Simon Guyo Mwacharo, among various others.
The Independent Power Producers (IPPs) consist of companies such as Lake Turkana Wind Power Limited, Iber Africa Power (EA) Limited, Orpower 4inc, Kipeto Energy Plc, Tsavo Power Company Limited, Rabai Power Limited, and Thika Power Limited.
Additional companies on this list are Gulf Power Limited, Vestas East Africa Limited, Triumph Power Generating Company Limited, Noora Power Limited, and Industrial Promotion Services (Kenya) Limited.
However, certain companies possess foreign directors and shareholders whose information remains undisclosed.
The committee is currently requesting Attorney General Justin Muturi’s intervention to contact foreign nations and solicit information about those specific individuals.
The beneficiaries without identifiable faces are citizens originating from Israel, Denmark, Spain, South Africa, Nigeria, the United States of America, Norway, and the United Kingdom.
Unveiling Key Players in High Electricity Costs: Including Mp Shahbal Suleiman
