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Energy Act 2006 PDF Print E-mail
Written by Peter Ndiangui   
Wednesday, 13 December 2006

Last week, Parliament enacted a new energy law, the Energy Act 2006, which among other things opens participation in electricity generation to private investors, and creates a Rural Electrification Authority.

Rural electrification will boost economic activities and employment in our market centres throughout the country. The supply of electricity allows development of light industries such as metalwork, woodwork, food processing and refrigeration, and internet related services that create local employment opportunities."

This Bills seeks to takeaway the monoply of power generation from Kengen by the creation of the Rural Electrification Authority that puts power generation in the hands of private developers. Look to a future with biodieasel plants running in Narok, Eldoret and Kitale using Barggas, maize and wheat straw?

Also on the horizon in the next decade could be strong wind farms in Garissa and Wajir. If the Rural Electricity Authority can be able to mobilise energy cooperatives with strong regulations to control the distribution, then this is not a far-away dream. We have already seen micro-hydro plants in Murang'a and Meru regions that are powering at least 400 homes. Biodiesel is another potential source of greener, cheaper energy. this is a good site to set off from. Vitally, creating local demand will be a preliqusite for impacting on local economies and especially farmers and processing corperatives in a manner similar to that of the KCC.

The potential of Bio-Fuel farming in Kenya and the potential to process it as alternative refined fuel ready to be sold to Europe in complementing volatile Coffee or Tea markets is great,  especially as the Kyoto protocol takes effect and carbon tax starts biting  hard on corporate Europe and Japan.  With the Middle East increasingly volatile and OPEC countries seemingly addicted to high fuel prices, we would benefit greatly from diversifying our energy sources.

 If in the process we can utilise the vast wastelands of Northern Kenya and make savings in forex that would otherwise be expended on Middle East oil, we will be well on the way to  achieving greater economic development.


Peter Ndiangui
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President Must Not Sign the En
written by Kimani S. Njoroge , January 19, 2007
I have not read the Energy Bill but i understand that it gives Minister for Energy power to control petrol prices. This is unfortunate and the president must not sign it until that clause is removed. Otherwise most parts of the Bill are reasonable.
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