Lawmakers have rejected a proposed amendment to the Energy Act, 2019, which sought to increase levies on electricity and petroleum.
The amendment, included in the Statute Law (Miscellaneous Amendments) Bill, would have doubled the levies collected by the Energy and Petroleum Regulatory Authority (EPRA) from 0.5% to 1%.
The National Assembly Energy Committee Chair, Vincent Musau, led the opposition to the proposal, citing concerns over its potential impact on already high energy costs.
"I propose deleting the amendment to Section 20(1), which sought to increase EPRA's levies on electricity and petroleum. Doubling these charges would directly burden consumers at a time when we are working to reduce energy costs," Musau stated.
Legislators supported the move on the floor of the House, saying Kenyans are currently overburdened by increased taxes.
"Kenyans are already struggling with electricity bills. Increasing EPRA's levy from 0.5% to 1% is inappropriate, and I fully support the deletion of this amendment. Our focus should be on reducing energy costs," Marakwet West MP Kangongo Bowen said.
Mathare MP Anthony Oluoch highlighted the broader economic implications, warning that high electricity costs discourage investment and drive investors to neighboring countries with cheaper energy.
Regulating Crude Oil Production
Similarly, Funyula MP Wilberforce Oundo lauded the move to reject the amendment, citing the harsh economic times.
"Kenya is among the countries with the highest electricity costs. I fully support the committee's position on rejecting this amendment," Oundo said.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The lawmakers, however, approved an amendment granting EPRA the authority to regulate crude oil.
This development aligns with Kenya's growing petroleum exploration and production activities, particularly in Turkana County.
"We are preparing for the regulation of crude oil, not necessarily for domestic use but to manage transit and pipeline operations for potential customers," Musau explained.
Tougher Penalties for vandalism
In addition to rejecting the levy hike, MPs passed amendments imposing stricter penalties for energy infrastructure theft. These include the forfeiture of vehicles used to transport stolen equipment.
"We must send a strong message to those who steal energy infrastructure," said Hon. Mary Emaase. "This is a serious offense that leaves entire communities in darkness. Thieves must face severe consequences."
The MPs also rejected EPRA's proposal to exempt all levies collected from the Consolidated Fund, arguing that such a move would diminish parliamentary oversight of the agency's finances.
The Statute Law (Miscellaneous Amendments) Bill, as passed, aims to balance regulatory reforms with consumer protection, ensuring affordable energy and curbing infrastructure theft.
