Major plan to control rising cost of power and transport
To control the rising cost of energy within the next five years, which is one of President William Ruto’s biggest headache, requires an additional Sh20.9 billion. The amount would also be used to implement various investments in the energy sector.
The Parliamentary Budget Office (PBO), its report, says Kenya Power and Lighting Company would be expected to spend Sh5 billion from its own budget to reduce government shareholding from the current 51 per cent to 15 per cent in the first year in order to allow the entity to operate on commercial principles.
This reduction is also aimed at enabling the government to bring down the cost of electricity through revamping the transmission and distribution network, accelerated geothermal resources projects, development of liquefied natural gas (LPG) storage facility in Mombasa, and enforcing transparency and public accountability of the electricity sector.
To accelerate geothermal resources development by drilling and exploration of Suswa Phase 1 project, the government will be expected to set aside Sh22.9 billion for the next five years.
To roll out Electric Vehicle (EV) charging infrastructure in all urban areas, the government will have to spend Sh3 billion in five years.
On the petroleum sector, the bottom-up economic plan commits to set up a legal framework to ring-fence the fuel stabilization fund, leverage financial support from the Hustler Fund to develop a nascent EV motor-vehicle assembly industry, and create incentives for electric mass transit systems.
Currently, the country’s road network is about 16,451km, valued at over Sh3.5 trillion. -