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Kenya’s President Uhuru Kenyatta has issued a statement on the presidential taskforce (the Taskforce) report with recommendations to review power purchase agreements (PPAs). The Taskforce was appointed in March this year to review the terms of PPAs entered into between various independent power producers and the Kenya Power and Lighting Company Limited (KPLC).
The President accepted the recommendations of the Taskforce and has directed the Ministry of Energy to implement them by 25 December 2021. The key recommendations of the Taskforce include:
In light of these developments, we expect that there will be several changes to the power sector in the coming months especially in areas such as procurement, establishment and negotiation of tariffs and the new forms of PPAs and Government letters of support — all of which will have a significant impact on independent power producers and their financiers. It remains to be seen whether the deadline for the implementation of these recommendations will be achieved.
The President’s full statement on the report by the Taskforce can be read here.
Should you have any questions regarding the information in this legal alert, please do not hesitate to contact Amyn Mussa.