Mega electricity generation projects valued at billions of shillings are in limbo after distributor Kenya Power froze the signing of new power purchase agreements (PPAs) indefinitely, citing financial constraints and excess capacity.
Kenya Power chairman Mahboub Maalim Mohamed said the monopoly electricity distributor would not sign new PPAs pending a sector review intended to establish the country’s additional demand for energy.
Mr Mohamed said electricity generation has overshot Kenya’s Power ability to absorb it, hence the need for a moratorium on any new projects.
The decision means investors who have lined up energy projects could be left in limbo with billions of dollars of investments getting stuck until the freeze on new power deals is lifted.
Source: Business Daily