Parliamentary committees have raised concerns over the future of the Kenya Electricity Generating Company, urging urgent action on the Kipevu III power plant LNG transition.
Lawmakers warned that failure to modernise the plant could trigger electricity shortages along the Coast after 2031.
The joint National Assembly committees on Energy, Commercial Affairs, and Public Investment made the remarks during an inspection visit to the facility in Mombasa.
MPs Push Shift from HFO to LNG
During the visit, MPs called on KenGen to transition the plant from Heavy Fuel Oil (HFO) to Liquefied Natural Gas (LNG).
They said the Kipevu III power plant LNG transition is necessary to ensure reliable electricity in the region.
The legislators noted that the plant’s current power purchase agreement expires in 2031, meaning operations could halt unless a new fuel strategy is adopted.
Power Supply Risk in Mombasa
Committee members warned that shutting down Kipevu III without an LNG plan would put Mombasa at risk of power shortages.
Electricity demand in the coastal city remains high, making the plant a critical component of supply.
KenGen told the committee that the facility has an installed capacity of 120MW, with 115MW supplied to the grid and 5MW reserved for internal use.
Kipevu III Still Running on Heavy Fuel Oil
The plant, which was commissioned in 2011, has been operating entirely on HFO under a 20-year contract set to expire in March 2031.
Although it was designed to run on both HFO and LNG, the Kipevu III power plant LNG transition has not been implemented.
MPs noted that LNG, while more expensive, is cleaner and aligns with Kenya’s energy transition goals.
Clean Energy Push and Policy Concerns
Lawmakers said that continuing to relying on HFO beyond 2031 would contradict the government’s push for sustainable and clean energy.
According to the MPs, adopting LNG would support Kenya’s broader energy transition agenda while reducing environmental impact.
Lessons from Kipevu I and II Shutdown
MPs recalled that the older Kipevu I and II plants were decommissioned after failing to transition from HFO. Their closure has already affected electricity stability along the Coast.
This leaves Kipevu III as the only operational thermal plant in the region, making the LNG transition even more urgent.
MPs Raise Concerns Over Transmission and Costs
Committee Chair David Pkosing said lessons from previous plant shutdowns must guide future energy planning.
Meanwhile, Turkana South MP John Ariko raised concerns over limited transmission infrastructure, which contributes to energy losses.
Lawmakers noted that expanding transmission lines would improve efficiency and reliability.
Questions Raised Over High Electricity Costs
MP David Kiplagat urged the Energy and Petroleum Regulatory Authority to ensure fairness in electricity production and distribution.
His sentiments were echoed by Yusuf Farah who question the cost of electricity despite Kenya achieving about 90% clean energy generation.
“Energy supply in Kenya is not subsidized, hence the power is sold at the true cost of production,” explained Eng. Odumbe.
He added that subsidies can significantly lower electricity prices per unit where applied.
Committee Issues FInal Directive to KenGen
The committee directed KenGen to adopt international standards for capacity payments to improve transparency and efficiency in the energy sector.
The MPs insisted that the Kipevu III power plant LNG transmission must be prioritized to safeguard power supply beyond 2031.
