By John Njiraini

The cost of electricity is bound to keep rising following the Government’s decision to scale down hydro generation in order to conserve water levels.

As the shilling continues to fall against the dollar, Kenyans will feel the pinch of rising electricity bills as the country relies on thermal for generation.

Energy Permanent Secretary Patrick Nyoike on Saturdaysaid electricity generation from hydro has been scaled down to 29 per cent of the installed capacity, while thermal generation has been increased to 47 per cent.

"We are trying to conserve water to avoid massive rationing. But we must understand that thermal generation leads to higher consumer prices," said Nyoike.

Being a net importer of petroleum products, this move means electricity tariffs in the country will rise due to the fuel charge that was adjusted only last week from Sh6.7 per unit to Sh8.2 per unit.

Much lower

By Saturday, the water levels at the Masinga Dam, which is the holding reservoir for the Tana Seven Folks cascade, was at 1,047 metres against a full capacity of 1,056 metres.

Nyoike was speaking after the Ministry of Energy received cheques worth Sh30 million from various companies sponsoring the forthcoming 2nd National Energy Conference.

Speaking at the event, Energy Minister Kiraitu Murungi said the Government is undertaking massive investments in the energy sector, which is key driver towards the realisation of the Vision 2030 blueprint.

The minister announced that a consortium, led by Chinese company Fenxy Mining, has been awarded the contract to mine coal in Mui Basin in Kitui.

The coal would be used in electricity generation as well as for industrial use in large manufacturing like cement companies.

New pipeline

Kiraitu also announced that a new petroleum pipeline would be constructed from Mombasa to Nairobi to replace the current line that has aged, and has been blamed for the deaths of more than 100 people in Sinai slums last week.

"The pipeline is 33-years-old and has a lot of patchwork. We cannot guarantee safety and engineers say we are sitting on a timebomb," he said.

The conference, dubbed ‘Powering the Vision’, will take stock of gains in the energy sector and explore opportunities for the future.

The conference will bring together policy makers, technical experts and stakeholders in the energy sector to exchange views on cost effective energy supply strategies.