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Parliament is probing the huge disparity between the amount Kenya Power pays independent power producers (IPPs) and State-owned KenGen for electricity sales, in yet another attempt to bring down the cost of energy.
KenGen sells electricity to Kenya Power at a wholesale price of about Sh7 per kilowatt hour (kWh) while some of the IPPs sell the same at about Sh10, with the thermal companies that use heavy fuel oil to generate power selling it at over Sh20 per kWh. This is before taxes and levies are loaded that bring the cost of power to about Sh24 per unit.
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