Bureaucratic gridlock at the Attorney General's office has stalled critical regulations that would allow KenGen to bypass Kenya Power and sell cheap electricity directly to industrial factories.

The Energy and Petroleum Regulatory Authority (EPRA) has exposed a massive administrative bottleneck, revealing that transformative power-wheeling rules are gathering dust on the Attorney General's desk.

This delay is a massive blow to Kenya's manufacturing sector, which is currently suffocating under exorbitant energy costs. Direct power sales would significantly lower the cost of production, make Kenyan exports globally competitive, and provide immediate relief to an economy struggling with high inflation and job losses.

The Promise of Direct Sales

Kenya Electricity Generating Company (KenGen) has long advocated for the ability to sell bulk electricity directly to large-scale manufacturers. This system, known as wheeling, allows private generators to use the national grid infrastructure for a fee.

By cutting out the middleman, factories could see their electricity bills slashed by up to 20%. For energy-intensive industries like cement and steel manufacturing, this translates to billions of shillings in annual savings.

The Regulatory Roadblock

• The Energy Act 2019 legally provides for an open access power market, ending Kenya Power's monopoly.
• EPRA drafted the necessary operational guidelines months ago, submitting them to the State Law Office for final gazettement.
• Without the AG's signature, the legal framework remains completely paralyzed, forcing factories to rely on expensive national grid tariffs.

The Attorney General's office has yet to provide a credible explanation for the delay. Industry insiders whisper of intense lobbying by entities desperate to protect Kenya Power's fragile revenue streams from catastrophic industrial flight.

However, protecting a state monopoly at the expense of industrial industrialization is a short-sighted economic strategy. Manufacturers are already exploring off-grid solar and biomass alternatives, threatening to leave the national grid altogether.

A Crippling Impact on the Economy

High power costs are actively driving away foreign direct investment. Neighboring countries like Ethiopia and Egypt are offering aggressive energy subsidies to lure multi-national corporations away from Nairobi.

Unless the AG's office acts swiftly, the dream of a robust, export-led Kenyan economy will remain a mirage, sacrificed at the altar of bureaucratic lethargy.

"We cannot industrialize a nation while shackling our most productive sectors to the highest energy tariffs in the region."