Tension Rises as Treasury and Attorney General Clash Over Power Agreements

A tense confrontation unfolded within the Energy Committee as National Treasury Cabinet Secretary Njuguna Ndung'u contradicted Attorney General Justin Muturi regarding the latter's involvement in Power Purchase Agreements (PPAs). Speaking before the committee, Ndung'u asserted, "The Office of the Attorney General makes legal clearance for letters of support to Independent Power Producers (IPPs)," challenging Muturi's claim that his office was not part of the PPA agreements with Kenya Power.

Ndung'u emphasized the importance of the letters of support, stating, "The letter of support is a mechanism used to protect the government as well as the private sector." However, Muturi maintained that his office had not been consulted during the signing of these agreements and stressed the need to comprehend the consequences of renegotiating or terminating existing contracts. He argued, "We must know the consequences of terminating these contracts."

The clash occurred during the Energy Committee's inquiry into the high cost of electricity in the country, led by Mwala MP Vincent Musyoka Kawaya. Chris Kirigua, Director General for Private Public Partnerships, supported Ndung'u's call for a review of the contracts, stating, "If it is established that something is wrong, it shouldn't be tolerated."

Amidst these disagreements, Members of Parliament expressed concerns about the impact of taxation measures on power costs. Ndung'u clarified, "The only national tax charged on electricity is VAT at the rate of 16 per cent," highlighting potential complexities if this tax were removed. This clash between government officials has left the nation on edge, questioning the future of power agreements in Kenya.