The Political Agenda For Energy Governance and Transition in Kenya
On 6th June 2022, the Azimio Coalition launched their political manifesto detailing their commitments and priority areas should they form Kenya’s next government after the August 2022 elections.
The manifesto touches on numerous areas and plans to better mwananchi’s quality of life, including the energy sector. Energy is an economic enabler and a crucial piece of the puzzle of poverty eradication, economic empowerment, building climate change adaptation and resilience capacity, achieving Vision 2030 and realising the sustainable development goals. In Kenya, about 30% of the populations is still living in energy poverty, while about 60% does not have access to clean cooking. The State has, through policy and legal frameworks, set targets to attain universal access to energy by 2030, and universal access to clean cooking by 2028. Further, the Kenyan government has made climate commitments under the Paris Agreement to reduce greenhouse gas emissions by 32% by 2030.
Lowering the cost of electricity
Azimio’s commitment to lower the electricity cost through legal and policy reforms meant to promote efficiency and reduce corruption is quite ambiguous. It is not clear whether the high electricity cost is being linked to corruption and inefficient governance in the sector. In 2021, a Presidential Taskforce on Power Purchase Agreements issued a report with their findings and recommendations on reforms to the electricity sub-sector necessary to lower the cost of electricity.
With increased debate on the place of natural gas in Africa’s transition pathway, one of the Taskforce’s recommendations is to have the current diesel-powered power plants converted into Liquified Natural Gas power plants, which would lower the cost of electricity while decarbonising the electricity sector.
A measurable commitment from Azimio would have been to start implementation of certain recommendations of the PPA Taskforce Report within the first 100 days in government. The next government is expected to implement the recommendations of the PPA Taskforce Report instead of reinventing the wheel when it does not have to.
Further, the commitment to increase transmission and distribution capacity while reducing costs should anchored on existing policy and regulatory frameworks on energy efficiency and conservation.
Rural electrification
The Coalition’s commitment on rural electrification follows previous rural electrification programmes including the Ten-Mile programme. Also, the Energy Act of 2019 creates the Rural Electrification and Renewable Energy Corporation, whose mandate is to oversee rural electrification. Therefore, the question on whether past interventions have been successful and what has not worked will need to be answered first, to inform successful subsequent rural electrification programmes.
Renewable energy and energy transition
Azimio’s commitment to increase investment in renewable energy should be done in line with proposed reforms by the PPA Taskforce on engaging independent power producers, to ensure that increased private-sector investment in renewable energy runs in tandem with the objective to reduce the cost of electricity.
Azimio commits to encourage the utilization of alternative sources of energy for transport and domestic use, including electric cars and solar energy. Realising this requires an overhaul of fiscal measures affecting renewable energy, and a commitment to implement the National Bioenergy strategy which makes provisions for biofuels for the transport sector and for domestic use. It will be interesting to see whether the next government will proceed with plans to covert the Changamwe oil refinery into a biofuels refinery.
The commitment to increase onshore and offshore oil and gas exploration, while at the same time committing to develop a national just energy transition plan seem contradictory. However, a national energy transition plan is welcome. In developing the Plan, Azimio will be expected to address crucial issues including energy poverty, environmental and human rights safeguards in energy transition, and gender-responsiveness in energy transition. Such a Plan should be should be anchored on an overriding objective of enhancing the country and communities’ climate change adaptation and resilience capacities.
Fuel prices
In implementing its commitment to review taxes and levies on petroleum products to make them more affordable, Azimio’s starting point should be to pass into law the Petroleum Products (Taxes and Levies) Amendment Bill, 2021. This Bill reviews taxes and levies imposed on petroleum products. It also introduces a governance framework for the Petroleum Development Levy, whose utilisation has been marred with lack of transparency and accountability, as was recently evidenced with fuel shortage and soaring fuel prices. Azimio will be expected to ensure transparency and accountability in the governance and utilisation of the petroleum development levy, and in fuel price stabilisation.
Environmental justice and human rights
Azimio’s intention to increase investment in renewable energy sources will see an increase in large scale energy projects whose development will lead to compulsory land acquisition. Besides committing to issue title deeds, the manifesto is not strong on the protection of land rights.
The energy sector has a significant impact on the environment, and Azimio’s commitment to strengthen NEMA should hopefully enhance environmental monitoring and protection in the energy sector.
Lastly, Azimio’s commitment to integrate environmental policies in its development agenda depicts a sustainable energy sector. This commitment must also come with the protection of environmental and human rights defenders and a safe civic space.