President Uhuru Kenyatta and his Deputy William Ruto turn a valve during the official commissioning of the 140-megawatt Ol Karia geothermal power plant in Naivasha on Friday. PHOTO | SULEIMAN MBATIAH  NATION MEDIA GROUP
The cost of living is expected to fall significantly after the government commissioned a new power plant expected to cut electricity bills by 30 per cent.
In a move aimed at reducing the cost of doing business and attracting investors, President Uhuru Kenyatta said he expected the reduction in tariffs to take effect at the end of this month.
The reduction in bills is expected as the country moves away from use of expensive heavy fuel to GENERATE electricity in favour of the cheaper and clean geothermal power.
Manufacturers are expected to PASS the benefit of cheaper power to consumers by lowering the cost of essential goods such as maize flour and sugar.
“Take my word that the cost of goods will come down and this will lead to a lower cost of living for all Kenyans,” said President Kenyatta at a function after the launch of the 140-megawatt geothermal power plant at Ol Karia in Naivasha Friday.
The Kenya Association of Manufacturers (KAM) issued a statement praising the move, saying commissioning of the project would help in lowering the cost of power. “Industrialists are saying a big congratulations to the government on this great achievement, which will go a long way in augmenting the POWER SUPPLY in the country,” said KAM Chief Executive Betty Maina.
Exploration of RENEWABLE ENERGY sources to replace the use of expensive electricity generated using diesel has seen a gradual decline in the cost of power.
At the end of July, the fuel cost, the largest component of power bills, stood at 722 cents per kilowatt hour. This declined to 479 cents at the end of September.
This is now expected to decline substantially with the commissioning of the geothermal power plant.
ATTRACTIVE FOR INVESTORS
In a meeting that was interactive and punctuated by friendly banter, Mr Kenyatta said the move was a “giant step” towards making the country attractive for investors.
He challenged Energy CABINET Secretary Davies Chichir to ensure that the tariffs were lowered or “count yourself out of the job”.
In the meeting, the Head of State, his deputy William Ruto and Mr Chirchir answered questions from the public.
Mr Kenyatta assured a young investor that he would earn more from his barbershop following the reduction. The young TRADER left the audience in stitches after requesting the Head of State to allow him to open a “new barbershop” inside State House.
The President, who appeared jovial, at one time referred a question to his deputy, describing him as “acting President”.
“Let the former acting President answer that,” he said amid applause from the public.
The President called upon manufactures, especially millers, to reciprocate the move by the government by reducing the price of flour.