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Expensive electricity bills to continue for 15 more years

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Official contracts have tied consumers to high electricity bills linked to thermal generation for up to another 15 years, records show.

A listing of the active diesel-run power generators shows that the longest power purchase agreement runs till 2035, leaving consumers with a longer wait before the expensive energy sources end. The Energy ministry last year began shedding the diesel-run power generation units by letting their contracts expire to reduce the burden on consumers.

Data from the Energy and Petroleum Regulatory Authority (Epra) show that there are eight thermal power plants with a combined installed capacity of 660.82 megawatts supplying the national grid.

Energy Cabinet Secretary Charles Keter said the option of waiting for the expiry of the production agreements would be the easiest as terminating them early would be costly.

“We are slowly retiring them by not renewing licences when contracts expire. This is based on our grid analysis, which show that technically, they can be decommissioned without negative impacts to the quality and security of supply of electricity,” Mr Keter said. The Epra list show that the Triumph Power Generating Company was the latest company to be signed for thermal power supply in July 2015.

The firm’s 83MW plant has a 20-year contract expiring in February 2035. Others like Coast–based Gulf Energy with 80MW and Thika Power with 90MW will expire in 2034.

READ ALSO:   Kenya Power ‘giving jobs to foreigners’

Switching off thermal plants is part of the government’s gradual phase-out plan of expensive diesel power generators as it moves to provide cheaper and cleaner energy.

Last year, Iberafrica’s 54MW thermal plant was dropped off the grid after 15 years with the expiry of its power purchase agreement.

The use of thermal power has been blamed for keeping Kenya’s electricity relatively expensive compared to countries like Egypt which largely uses hydro sources retailing at Sh3.23 per kilowatt hour (unit) on average compared to thermal’s Sh18 per unit.

By Nation.co.ke

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How Kenyan family stole billions in the US

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When in November last year, the National Police Service said it had received information from Interpol that some Kenyans were wanted in the US for alleged fraud offence, one of the names released was that of Edwin Sila Nyumu, a man who had been on the run.

Nyumu and his family were behind a US based crime syndicate that launched  hundreds of millions of dollars in the country but managed to escape the FB dragnet to hide in Mlolongo Machakos.

In total, the family members are believed to have stolen more than Kshs.2 billion in a tax fraud, the Nation has established. It is one of the biggest cyber-crime heists in the blossoming industry.

The Daily Nation reports that how this Kenyan family laid a scamming web and managed to bilk millions of dollars and send them to Kenya without raising an alarm has always petrified the investigators.

TheDaily Nation reports that for 12 years, since his name first appeared on the Interpol list, Nyumu oiled the palms of all those who his identity and the Nation was informed he was a cash cow of police officers, until the money ran out last year.

By then, and after 12 years, he could no longer be charged with fraud since the federal crimes have a statute limitations which protects the people from being harassed and having to constantly defend themselves from old charges.

READ ALSO:   Kenya Power ‘giving jobs to foreigners’

Record indicate that on November 6 last year, Corporal general Kamwaro swore an affidavit seeking a fresh order to arrest Nyumu.

Kamwaro said Nairobi Interpol office has contacted the US Nationla Central Bureau Interpol to forward extradition documents against the suspect.

By Daily Nation

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Vp5 solar powered water finally flowing at Victory Gardens

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We are happy that Victory Gardens Phase 5 is continuing to shape up as Nairobi Metropolis’ ultimate gated community.

Amongst other recent developments in this Kitengela project, the residential homes in this gated community will now have adequate and round the clock flow of water, with 20, 000 liters of water now gushing forth and into their pipes courtesy of solar energy.

Eng. Odhiambo, who has been in charge of this development notes that the installation of this water system was not only successful but also very smooth. He notes that he always get many more businesses flowing his way as soon as he has done any works for Optiven.

Eng. Odhiambo’s sentiments concerning these special heavenly favours are also echoed by many Optiven customers who buy properties from this leading real estate firm (watch more on this video: https://www.youtube.com/watch?v=2KUe6DaF2lE) Many more customers keep confessing this special favour that can be defined as purely divine.

We believe that our weekly Wednesday prayers have been working for our staff, customers and suppliers alike. This means that our vision to economically and socially empower the communities is real.

Join this favored project. If you already bought, obey all the rules placed at the entry gate. Ensure you make this project a green project, take care of its trees, the fruits, and care for refuse. On this one, we now have a company that collects all the waste for a small fees, we have security men at the gate, be kind to them. Little kindness will go a long way by boosting their morale.

READ ALSO:   Kenya Power ‘giving jobs to foreigners’

Let’s make Victory Gardens a victorious project, and a place of untold tranquility.

If you have a friend looking for the best project in Nairobi Metropolis

Share this no: 0790 300 300 or 0723 400 500
Website: www.optiven.co.ke

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Hike in fuel prices was an error – Petroleum CS 

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BY KEVIN KOECH

Petroleum PS Andrew Kamau on Sunday, August 2, revealed that the hike in fuel prices for the July 15 – August 14, period was a result of a calculation error.

“There was a miscalculation by EPRA when they had not included excise duty in computing the VAT and that had to be corrected in the latest pricing review.

“This has now been corrected and since it was not the oil marketers’ mistake, there was no way to go back and ask them for what they didn’t collect,” the PS said.

On July 15, the Energy and Petroleum Regulatory Authority (EPRA) announced new fuel prices which resulted in a huge spike compared to the previous 30-day period.

Petrol prices rose by Ksh11.38 to retail at Ksh100.48 per litre in Nairobi while a litre of diesel increased by Ksh17.3 to sell at Ksh91.87 in the capital.

According to PS Kamau, EPRA erronously calculated the latest prices resulting in the surge.

In a statement, EPRA highlighted the under-recovery of VAT in regards to Kerosene which was not imported during the month in review.

“Price has been maintained but adjusted for the under-recovery of value-added tax by oil marketing companies that occurred in the previous pricing cycle,” the statement reads in part.

READ ALSO:   Kenya Power ‘giving jobs to foreigners’

However, the energy regulator maintained that the blame for the error lay squarely on oil marketing companies who misunderstood the taxation law.

EPRA director-general Pavel Oimeke stated that the companies did not adhere to Sections 13 and 14 of the VAT Act, 2013.

The marketers had reportedly included only the excise duty as part of the taxable value rather than all taxes, levies, duties and fees in line with Section 13(3)(c) of the VAT, 2013, and the Tax Laws (Amendment) Act, 2020.

According to the Kenya Revenue Authority (KRA), VAT computation for super petrol, diesel and kerosene at the import point differs from the one at the sales point.

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