Saturday, January 27, 2007

Overhaul of the power sector

If I was to be asked which economic sector is really in need of overhauling in Kenya over the next 3 years (apart from banking, stockbroking, insurance, agriculture, car, transport to name but a few), i'd say the power sector is. And it would probably be the easiest to do. So what are some of my suggestions:

Short-term
KPLC needs to be better at collecting debts especially those owed by the government.
The pricing issue with KenGen needs to be passed onto the customer-the customer who is also a taxpayer is already paying for this thru the govt covering the shortfall between what KPLC is paying and what it should be paying KenGen. At the moment we are trying to hide the fact that power costs alot to produce in Kenya. This is the reality, so lets pay KenGen in a timely manner so they can continue to reinvest and find cheaper ways of producing more power.
Medium-term
We should introduce another distributor into the market-either serving certain areas of Kenya or in direct competition with KPLC. We should let KPLC be a private entity-so gove divesture to KQ's level. Of the two, its more important that we have some government conttrol over power generation.
Long-term
We must redouble efforts to utilise the most natural of our resources-the sun- to generate enough power. We should go further and require that all buildings-old and new-have the capability to easily hold the solar panels used.

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