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Kenya’s MPs reject Levy hike, approve crude oil regulation

Teresiah Ngio by Teresiah Ngio
November 22, 2024
in News
Reading Time: 1 min read

Kenya’s lawmakers have rejected a proposal to amend the Energy Act of 2019, which aimed to double the levies on electricity and petroleum. The proposed amendment, part of the Statute Law (Miscellaneous Amendments) Bill, sought to increase the Energy and Petroleum Regulatory Authority (EPRA)’s levies from 0.5% to 1%.

The rejection was led by the National Assembly Energy Committee Chair, Vincent Musau, who argued that increasing the levies would place an unnecessary burden on consumers already struggling with high energy costs. “Doubling these charges would place an additional burden on consumers at a time when we are striving to lower energy costs,” Musau stated.

Other lawmakers voiced strong opposition to the amendment, emphasizing the negative impact it would have on households. “Kenyans are struggling with high electricity bills. Raising EPRA’s levy from 0.5% to 1% is unacceptable, and I fully support removing this amendment,” said Marakwet West MP Kangongo Bowen.

Mathare MP Anthony Oluoch raised concerns over the broader economic impact, warning that higher energy costs could discourage investment. “High electricity costs could deter investors and drive them to neighboring countries with cheaper energy,” Oluoch said. Funyula MP Wilberforce Oundo also expressed support for the rejection, highlighting Kenya’s already high electricity costs compared to global standards.

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In contrast, lawmakers approved other amendments to the bill, including granting EPRA the authority to regulate crude oil, in line with Kenya’s growing petroleum exploration efforts, particularly in Turkana County. “We are preparing for the regulation of crude oil… for managing transit and pipeline operations for potential customers,” Musau explained.

Additionally, MPs approved tougher penalties for energy infrastructure theft, including the confiscation of vehicles used in transporting stolen equipment. “This is a serious offense that plunges entire communities into darkness. Thieves must face severe consequences,” said MP Mary Emaase.

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