Cost of living high despite Sh200b spent on power, says Uhuru's aide
Business
By
Graham Kajilwa
| Aug 01, 2016
State House has asked manufacturers to reduce the cost of commodities to let consumers enjoy benefits of low cost of power.
Manoah Esipisu, the State House spokesperson, said even after billions were spent by the Government to increase connectivity and cut the cost of power, very little was reflected on Kenyans’ standards of living.
“Just last week, we saw the numbers indicating a slight rise in the cost of living. We believe manufacturers could do more to lower the cost of commodities, especially because three years ago, they specifically told the President that lower energy costs would lead to lower commodity prices,” said Mr Esipisu.
He noted the market has seen a fall in the costs of commercial energy “but these have not been matched by commensurate cuts in the prices of manufactured goods”.
Following the energy summit held last week by President Uhuru Kenyatta which all players attended, Kenya Association of Manufacturers boss Phyllis Wakiaga had argued that although power cost was low, other countries have even much lower rates.
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Another summit has been scheduled for August 8.
INCREASED CONNECTIONS
Numbers from State House indicate the Government might have spent slightly over Sh200 billion in ensuring increased connections across the country in the last two years.
This includes Sh32 billion on the school electrification programme, which has seen over 23,000 schools connected to both the national grid and solar power (where the grid is unreachable).
“Since 2013 as well, we have commissioned over 40 new sub-stations, and raised power generation from 1,765 MW to more than 2,422 MW today. The last addition of more than 600 MW of power has cost the Government and investors over Sh100 billion,” said Esipisu.
Speaking yesterday at State House, Esipisu noted that apart from the energy sector, Kenya will be benefiting even more from other development partners in areas following lined up bilateral talks.
“Japan’s Prime Minister Shinzo Abe is expected to make a State visit during the Tokyo International Convention for Africa’s Development scheduled for August 27-28. Health will be a major discussion especially on issues reproductive health and HIV/AIDS and cancer in children and young people,” said Esipisu.
He also noted that President Kenyatta will be hosting French Foreign Minister Jean-Marc Ayrault today where the two leaders will discuss bilateral issues on trade and security.
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