As a formerly highly paid executive who left, rolled her sleeves and got to working on  turning Ethiopia  "into a regional food basket" Eleni Gabre Madhin , goes to proof that we can all get down to the practical rather waiting for things to fall in place and be perfect  before we engage.
 
When  KICTANet started in 2003, we got together to speed up ICT policy process, to contribute to access related among others. We have made great great strides and gains since then on all fronts. Can 2012 be the year where we get down to the business of being practical? can we now shift gears from discussing lack of services ( I am guilty.... electricity, poor state of our roads) to rolling our sleeves and finding practical solutions?   P.S Ndemo's invitation  below to "come up with mobile  applications and also leverage on the digital villages and unlock the Kenyan potential in agriculture" is timely and hope many listers will attend the meeting and also provide opportunities for more of this level of engagement.

 We can shift our attitudes, enhance our  capacity to innovate  (in the private and in the public sector)  and increase our ability to adopt and adapt ICTs  to local conditions  to increase our productivity,  efficiency etc, which a precondition for growth  and what 2030 vision aims to achieve.

Wishing all a very innovative and productive 2012.

Best
Alice

Harry,
I request you to view the film clip in the link below on Ethiopia
Commodity Exchange.  This will simplfy our vision especially in
improvement of the efficiencies in our agricultural sector.

http://blog.ted.com/2008/08/12/archive_eleni_g/

Coservative estimates put our agicultural waste at about $5 billion.  The
lady you see in the film could have chosen any of the variables below:
Complain from the diaspora that their government is oppressive; that
Ethiopians at home do not know anything; that there is corruption in
Ethiopia; that the government is doing nothing to alleviate poverty and so
on.

She chose to roll her sleeves and show her people what needs to be done. 
With a few developers, I have asked that we come up with the application
on the mobile and also leverage on the digital villages and unlock the
Kenyan potential in agriculture.  If you are interested, please register
with mchege66@gmail.com.  We do not need to be in government or senior
positions in private sector to change this country for ever.  We shall
have the first meeting towards the end of January.  That is how you can
understand what Mugo wants to achieve.


Regards


Ndemo.





Many thanks, David... and what a resource...!,



Ladies and gentlemen,  for those who have a keen  interest in matters
pertaining energy, here is  a huge resource we can interrogate.
Especially, where it has a  direct bearing as a driver for ICT growth and
by extension to the Vision 2030.



I will revert on key elements, but I noted this part:-



4.3 Future Economic Outlook: The Vision 2030

Until 2007, the Economic Recovery Strategy for wealth and employment
creation (ERS) established the foundation upon which to build a prosperous
Kenya and a robust economic growth. Following ERS, the Government launched
the Vision 2030 for outlining the broader macro-economic objectives and
strategy of the country up to the year 2030. The Vision 2030 was further
elaborated in the Medium Term Plan 2008-2012 (MTP) which aims at
consolidating the gains of the ERS. This is based on the implementation of
a low and stable inflation and interest rates, sustainable public debt,
competitive environment and refurbishing of infrastructures. The Vision
2030 describes the way Kenya will be transformed from a low income
agrarian economy into a newly industrialized middle income country,
providing a high quality of life to all its citizens. This goal is based
on three pillars, namely political stability, social development and
economic growth. The economic objectives supporting the Vision 2030
require an annual GDP growth of at a least 10%, to be reached by the year
2015. For achieving this target six key sectors of production have been
identified: tourism, agriculture, manufacturing, wholesale and retail
trade, business processes out outsourcing (BPO) and financial services.
The Vision 2030 identifies energy and electricity as a key element of
Kenya’s sustained economic growth and transformation.



>From the statement of intent above we can interrogate 3 Key things in
relation with Vision2030:-

·         The economic objectives supporting the Vision 2030 require an
annual GDP growth of at a least 10%, to be reached by the year 2015.-
Clearly, gains made are being speedily reversed in this area, looking at
the current inflation and interest rates that have shot up. Again the
Medium Term Plan, highlights these 2 as key areas, including improving the
business environment, and infrastructure refurbishment..

·         Based on their analysis, the demand in the Energy sector
especially Electricity seems to draw a parallel to the shifting shadows in
GDP. Is this the only variable…? What about the pricing model, that
might also be driving away demand in form of investors choosing to invest
elsewhere ..?

·         We stepping into an election year, the cycle we’ve witnessed
in the past dictates a meltdown in gains made run-up to the election year,
then we again start from scratch. How do we make a clean break with the
past, consolidate gains especially for the MTP, and ensure we remain on
track, come elections or not..?



I believe Mr. Mugo, you can address this…?



Harry



Harry





-----Original Message-----
From: David Otwoma [mailto:otwomad@gmail.com]
Sent: Wednesday, January 04, 2012 3:20 PM
To: harry@comtelsys.co.ke
Cc: KICTAnet ICT Policy Discussions
Subject: Re: [kictanet] Vision 2030: ICT and Other Sectors Converged (Day
3)



Sorry Harry,



Have been able to obtain the2nd draft but it is the 3rd draft National
Energy Policy document that will be availed for public comments/feedback
from 3rd to 11th February 2011. The venue of its first release (3rd
February) is the School of Monetary Studies.



As consolation attached please find the Least Cost Power Development Plan
2011-2031. Comments are welcome to feed into the next LCPDP

2013-2033 that will be out early next year. However, this is for
electricity sub sector only.



David



On 1/3/12, Harry Delano <harry@comtelsys.co.ke> wrote:


        

        
Thanks David,

        

        

        
Looking at the list of technocrats mentioned working on the National

        
Energy Policy, it looks to me the policy drafting is restricted to the

        
Energy sector technocrats. It doesn't look like we have any broad

        
based representation that cuts across the entire Public sector

        
spectrum, especially when it comes to dealing with such a crucial

        
sector. I thought, this is the spirit and letter under the new

        
constitution..? And is vision 2030 represented to ensure the policy is

        
in tune with the vision - I suppose then we can seek to make input via

        
their delegation on the team.

        

        

        
Any possibility, that you got your hands on the draft document for our

        
review...?

        

        

        
More later, as we check out the resources you gave out..

        

        

        
Many thanks, once again..

        

        

        
Regards,

        
Harry

        

        

        
-----Original Message-----

        
From: David Otwoma [mailto:otwomad@gmail.com]

        
Sent: Monday, January 02, 2012 10:37 AM

        
To: harry@comtelsys.co.ke

        
Cc: KICTAnet ICT Policy Discussions

        
Subject: Re: [kictanet] Vision 2030: ICT and Other Sectors Converged

        
(Day 3)

        

        

        
Harry,

        

        

        
Thank you for your email with suggestion of Energy concept Paper.

        
However, the Ministry of Energy in conjunction with all players in

        
energy (ERC, GDC, KPLC, KenGen, NEPC, REA etc.) are working on an

        
National Energy Policy. A second draft was produced in December 2011

        
and will ask tomorrow if its allowed to circulate it and communicate

        
accordingly. A number of my colleagues are on the drafting Committees

        
(there is the Executive composed of PS, MoE; the MDs of ERC, GDC,

        
KPLC, KenGen, NEPC, REA etc.), (then technocrats composed of lawyers,

        
engineers, economists etc in MoE, ERC, GDC, KPLC, KenGen, NEPC, REA

        
etc.). Last timetable I have possession of envisages the National

        
Energy Policy being ready in early 2013. Usually such a Policy would

        
become a Sessional Paper (as the one of 2004 that led to the Energy

        
Act of 2006) once adopted by the Cabinet. Thereafter its

        
recommendations (legislation setting and regulatory matters if enacted

        
by Parliament become law) are the ones which may be for public

        
consumption. But we now have a Constitution that stipulates power

        
emanates from the people....not oozing from the Executive so....

        

        

        
On Dr. Ndemo he said  ‘ Similarly, when the cost of energy goes up, we

        
should move towards the sabstitutes even if it is a monopoly

        
situation.  By now we should have built solar to such levels that we

        
can force KPLC to be considerate in pricing.’ After he once advised me

        
to watch ‘Field of Dreams’ I somehow managed to get a few of the
team

        
members of the Least Cost Power Development Plan on my side and since

        
then I consider him a very progressive ally. Only last week an

        
aquittance born, bred and from Scandinavia categorically informed me

        
he is relocating permanently to our part of the world after more than

        
40 years working in the north. His logic is that ‘we (Kenyans) are

        
always fighting over a small cake when all around us there is flour,

        
baking powder, sugar and energy to bake very many small cakes enough

        
for all of us’. That reminded me of ‘Field of Dreams’.

        
Every time you see a small, medium and big building (house) be it in

        
uptown Runda or Mathare/Kibera informal settlement…anywhere dotted

        
along the roads/paths we drive/walk….it is a potential solar centre.

        
Only Ghana, at the close of 2011, in Africa is committed to

        
implementing smart grid technology. This is a no brainer as China,

        
Germany among other already use it. If you have solar on your building

        
during the day it saves you energy (converted to electricity when you

        
need it). Any excess may be offloaded to the grid who when they

        
balance their books either request for extra payment of make you a

        
cheque if you used less than you generated. If you have driven/walked

        
along Parliament road at night the street lights there use solar. Why

        
the City Council of Nairobi, Mombasa Municipal, Kisumu and all those

        
other county councils cannot replicate this is a mystery to me! All

        
schools, health centers, market places etc would also be having the

        
same.Dr. Ndemo is spot on when he says ‘By now we should have built

        
solar to such levels that we can force KPLC to be considerate in

        
pricing.’ as what is lacking in our beloved Kenya is the will.  All

        
those power pylons may be made to each house unlike the current

        
situation where Kenyans 'beg' REA and/or KPLC to bring poles to them

        
after paying upfront. We need the implementation of the smart grid

        
technology locally…but remember Ghana is politically more mature than

        
Kenya (they already know who will be the Presidential hopefuls when

        
they hold their elections this year and additionally the two main

        
parties are issue based not individual based) and that contributed to

        
their economic growth being 14% (according to the ruling party but 8%

        
according to the main opposing party).

        

        

        
David

        

        

        

        

        

        

        
On 1/2/12, Harry Delano <harry@comtelsys.co.ke> wrote:

        

          

        

          

        
Ladies and Gentlemen,

        

          

        

          

        

          

        
David's well articulated summary herein below on the going's on in

        
the Energy Sector to date ( David I hope you do not mind working on

        
an Energy concept Paper as requested

        

          

        
by the Vision 2030), quite clearly indicates that we are in the woods

        
as we have stated before.

        

          

        

          

        

          

        
It is imperative that we realize that if we have to bring energy

        
efficiencies to speed and develop & industrialize this economy,

        
electricity has to lead from the front.

        

          

        
It therefore follows that we must  streamline the main players – very

        
critical. We cannot tolerate a situation where investors are in full

        
flight citing the high cost of

        

          

        
electricity to set up industry here at home, while neighboring

        
countries can easily accommodate their needs.

        

          

        

          

        

          

        
I suppose that we can note with satisfaction the efforts being

        
undertaken in electricity generation so far, as earlier assessed.

        
However we have to address  the

        

          

        
distribution sector.

        

          

        

          

        

          

        
For me, I would be keen on three areas:

        

          

        

          

        

          

        
1.    The ‘goings-on’ at the  Distributor – KPLC.  If whether it
is a

        
parastatal, quasi-parastatal or its ownership remains a ‘mystery
shroud’

        
to

        
date, we need to resolve this now. Does this interfere in any way

        
with operational/pricing efficiencies filtering to the consumers?

        
There needs to be transparency with a critical national utility

        
Service provider such as this.. So can the right honorable gentlemen

        
please clear the air on this?

        
Grace.., possibly we could request Hon Rege for comment on this or

        
get on board an active member of the Committee on Energy..?

        

          

        
2.    Monopoly – We still insist  - Competition breeds competencies.
Can

        
we

        
systematically begin working on breaking up the monopoly setup we

        
currently have in place. What happened to the Energy Act 2006  that

        
was to remove monopoly of Kenya Power as distributor …?

        

          

        
3.    ERC – Am still yet to fully comprehend the makeup
structure/mandate.

        
Can we make it work better – especially, on Electricity/Oil..?

        

          

        

          

        

          

        
Bw PS, while we may fully agree that Solar energy is a viable

        
alternative am afraid that by our standards here and now, we can only

        
develop some small scale domestic consumption in the short term. This

        
won’t

        

          

        
really make any much dent in KPLC’s side. Meanwhile, we are

        
discussing driving economy /industrial growth in the mid-term/long

        
term for Vision 2030. Electricity has to carry out the job and drive
this.

        

          

        

          

        

          

        
The general concern we all share right now is that, while we are

        
actively scaling up efforts to generate more power to fuel our

        
growth, we might just have to content with a bottleneck distribution,

        
and this is currently only done by KPLC and so far, this state of

        
affairs is quite unsatisfactory.

        

          

        

          

        

          

        

          

        

          

        
Harry

        

          

        

          

        

          

        

          

        

          

        

          

        

          

        

          

        

          

        

          

        

          

        
-----Original Message-----

        
From: kictanet-bounces+harry=comtelsys.co.ke@lists.kictanet.or.ke

        
[mailto:kictanet-bounces+harry=comtelsys.co.ke@lists.kictanet.or.ke]

        
On Behalf Of David Otwoma

        
Sent: Sunday, January 01, 2012 10:35 PM

        
To: harry@comtelsys.co.ke

        
Cc: KICTAnet ICT Policy Discussions

        
Subject: Re: [kictanet] Vision 2030: ICT and Other Sectors Converged

        
(Day

        
3)

        

          

        

          

        

          

        
Solomon,

        

          

        

          

        

          

        
Having moved from Science & Technology (under Ministry of Higher

        

          

        
Education, Science and Technology) to Nuclear Electricity Project

        

          

        
(under Ministry of Energy) there are some perceptions that the PS of

        

          

        
Information & Communication have that needs further interrogating.

        

          

        

          

        

          

        
While working outside Kenya (1998 to 2006) I was privileged to visit

        

          

        
many countries that operated nuclear power plants for electricity

        

          

        
generation and will share experiences from a few.

        

          

        

          

        

          

        
In France the energy giant is called EDF.see

        

          

        
http://france.edf.com/france-45634.html It is like combining Kenya

        

          

        
Power (distributors), KETRACO (transmitters), KenGen (generators) and

        

          

        
a myriad of others e.g. Nuclear Electricity Project, Geothermal

        

          

        
Development Co, Rural Electrification, etc. EDF owns power stations

        

          

        
(58 nuclear power plants, coal and gas power generators, hydro power

        

          

        
stations). EDF also owns the transmission lines (for both high and

        
low

        

          

        
voltages) and EDF is also a great marketer (sells electricity to over

        

          

        
30 million customers in France and over 25 million outside France).

        

          

        
Yet the government of France owns the lion share in EDF. What we call

        

          

        
here Independent Power Producers are insignificant in France. In fact

        

          

        
the regulators, who for example control the nuclear power

        

          

        
infrastructure (called the French  Nuclear Safety Authority see

        

          

        
http://www.french-nuclear-safety.fr/ ) has only 5 Commissioners (2

        

          

        
selected by the President, 1 by the Prime Minister –the French have a

        

          

        
system whereby the losing party produces the prime Minister – one by

        

          

        
the equivalent of COTU, one by the professional in the nuclear

        

          

        
industry). This is similar to USA where Nuclear Regulatory Commission

        

          

        
also has 5 Commissioners, 3 chosen by the party in power and 2 by the

        

          

        
losing party. In both France and USA nuclear is therefore a national

        

          

        
matter and is not reduced to part politics.

        

          

        

          

        

          

        
In USA by contrast what we call here IPP reign supreme. In nuclear

        
for

        

          

        
example some equivalents of our Tana and Arthi River Develoment

        

          

        
Authority, Kerio Valley Authority I;e; Tennesse Valley Authority own

        

          

        
both hydro and nuclear power plants. Municipalities too own power

        

          

        
companies. So too do equivalents of IPPs here. Different entities

        
also

        

          

        
own transmission and distribution lines.

        

          

        

          

        

          

        
What is in USA is more of an exception and not the rule. The

        

          

        
rules/laws in USA for example would not tolerate a scenario where a

        

          

        
serving people’s representative (in Senate or Congress) would be a

        

          

        
wanted person for deals done when s/he was a Secretary (of State,

        

          

        
Energy, Treasury etc.) and a former MD (President in USA energy firm)

        

          

        
would be ‘respectable’ public figures after questions bordering on

        

          

        
criminality arise.  Most of the world (Russia, China, Japan, South

        

          

        
Korea, Iran, Egypt, etc.) the government irrespective of the party in

        

          

        
power plays a very visible role in energy generation, transmission,

        

          

        
distribution and marketing. In Egypt for example electricity is

        

          

        
cheaper for manufacturers (hence fruits grown in Egypt by irrigation

        

          

        
using electricity to pump water from the nile to orchards are cheaper

        

          

        
in Kenya than our own locally produced fruits with rain fed

        

          

        
agriculture!) and heavily subsidized for the population so as to

        

          

        
ensure 98% electrification (Kenya we are just blow 20% while in

        

          

        
Hungary upto year 1999 every human habitation it was the duty of the

        

          

        
government to connect it with electricity that costs less than kshs.

        

          

        
40 per month for the dweller then irrespective of consumption).

        

          

        

          

        

          

        
Hansard has a report with the following in it.

        

          

        

          

        

          

        
The Energy Act 2006 removes monopoly of Kenya Power as distributor.

        

          

        
The Committee on Energy, Communications and Information was

        

          

        
constituted on June 17th 2009 and its membership is as follows:-

        

          

        
1. The Hon. (Eng.) James Rege, M.P. Chairman

        

          

        
2. The Hon. Maina Kamau, M.P Vice Chairman

        

          

        
3. The Hon. Danson Mwazo Mwakulegwa, M.P

        

          

        
4. The Hon. Mohamed Hussein Ali, M.P

        

          

        
5. The Hon. (Eng.) Nicholas Gumbo, M.P

        

          

        
6. The Hon. Edwin O. Yinda, M.P

        

          

        
7. The Hon. Emilio Kathuri, M.P

        

          

        
8. The Hon. Ekwee Ethuro ,M.P

        

          

        
9. The Hon. (Prof.) Phillip Kaloki, M.P

        

          

        
10. The Hon. Cyprian Omolo, M.P

        

          

        
The Committee is mandated to consider:-

        

          

        
• Development, production, maintenance and regulation of Energy.

        

          

        
• Communication.

        

          

        
• Information.

        

          

        
• Broadcasting, and

        

          

        
• Information Communications Technology (ICT) development.

        

          

        

          

        

          

        
The Committee executes its mandate in accordance with the provisions

        
of Standing

        

          

        
Order 198 (3), which is –

        

          

        

          

        

          

        
a) to investigate, inquire into, and report on all matters relating

        
to

        

          

        
the mandate,

        

          

        
management, activities, administration, operations and estimates of

        
the assigned

        

          

        
Ministries and Departments;

        

          

        
b) to Study the programme and policy objectives on Ministries and

        

          

        
Departments and

        

          

        
the effectiveness of the implementation;

        

          

        
c) to Study and review all legislation referred to it;

        

          

        
d) to study, assess and analyze the relative success of the

        
Ministries and

        

          

        
departments as measured by the results obtained as compared with

        
their stated

        

          

        
objectives;

        

          

        
e) to investigate and enquire into all matters relating to the

        

          

        
assigned Ministries and

        

          

        
departments as they may deem necessary, and as may be referred to

        
them by the

        

          

        
House or a Minister; and

        

          

        
f) to make reports and recommendations to the House as often as

        
possible,

        

          

        
including recommendation of proposed legislation.

        

          

        
Further, Standing Order No. 152 provide that:-

        

          

        
(1) Upon being laid before the National Assembly, the Annual

        
Estimates

        

          

        
shall stand

        

          

        
committed to the respective Departmental Committees according to

        
their

        

          

        
mandates.

        

          

        
(2) Each Departmental Committee shall consider, discuss and review

        
the Estimates

        

          

        
committed to it under this standing order and submit its report

        
thereon to the

        

          

        
House within twenty one days after they were first laid before the
House.

        

          

        

          

        

          

        
Ministries assigned

        

          

        

          

        

          

        
In executing its oversight mandate the Committee oversees the

        

          

        
following Ministries:-

        

          

        
i) Ministry of Energy

        

          

        
ii) Ministry of Information and Communications.

        

          

        
On Wednesday14th April, 2010 during the Afternoon Sitting, the Member

        

          

        
of Parliament

        

          

        
for Mumias Constituency, Hon. Benjamin Washiali asked the Ministry of

        
Energy the

        

          

        
following Question by Private Notice.

        

          

        

          

        

          

        
a. What is the relationship between Kenya Power and Lighting Company

        

          

        
(KPLC) and Rural Electrification Authority (REA)?

        

          

        
b. How much money has the Ministry paid to KPLC through REA since its

        

          

        
inception to date?

        

          

        
c. Could the Minister provide details of the amount paid as dividends

        
to the

        

          

        
major shareholders of KPLC since its privatization?

        

          

        

          

        

          

        
In addition to this Question, the Member for Yatta, Hon. Charles

        
Kilonzo had on

        

          

        
Tuesday 16th March, 2010 asked a Question on overcharging of

        

          

        
electricity consumers

        

          

        
by KPLC.

        

          

        
The two questions elicited a lot of interest from Members who sought

        

          

        
to know whether

        

          

        
KPLC is a parastatal or a private company, its shareholders, whether

        
it receives

        

          

        
funding or financial support from the Government, its working

        

          

        
relationship with REA,

        

          

        
the amount of dividends it had paid to its shareholders over time and

        

          

        
other issues

        

          

        
surrounding its ownership and management. As a result, on 14th April,

        
2010, the

        

          

        
Speaker directed that the Departmental Committee on Energy,

        
Communication and

        

          

        
Information should take up this matter and file a report in the House.

        

          

        
KPLC is a public company that was incorporated in 1922 as a private

        

          

        
company and was

        

          

        
later listed in the NSE in 1954. On diverse dates between 1960 and

        
1975, the

        

          

        
government bought KPLC shares totaling to 32,853,268 which represents

        

          

        
40.4% of the

        

          

        
voting shares of the Company. It is responsible for transmission,

        

          

        
distribution and retail

        

          

        
supply of electrical energy to end users. It purchases power in bulk

        

          

        
from KenGen and

        

          

        
the IPPs through bilateral contracts or Power Purchase Agreements

        

          

        
(PPAs) approved

        

          

        
by ERC.

        

          

        

          

        

          

        
KPLC is responsible for ensuring that there is adequate line capacity

        

          

        
to maintain supply

        

          

        
and quality of electricity across the country. The interconnected

        

          

        
network of transmission

        

          

        
and distribution lines covers about 41,486 kilometers. It has more

        

          

        
than 1,500,000

        

          

        
customers who consumed over 5,432 Gigawatt hours of electricity in

        
the

        

          

        
financial year

        

          

        
2008/9. During the year, the maximum daily electricity peak demand

        
recorded was

        

          

        
1,072 MW.

        

          

        

          

        

          

        
The Energy Act and the Sessional Paper No. 4 of 2004 on Energy widely

        

          

        
liberalized the

        

          

        
energy sector in the country which was started in 1997 when KenGen

        
was

        

          

        
formed out of

        

          

        
KPLC. The Policy Paper among others established a single energy

        
regulator and

        

          

        
unbundled KPLC to form KETRACO, REA and GDC.

        

          

        

          

        

          

        
KPLC is the only licensed supplier, distributor and retailer of

        

          

        
electrical energy in Kenya

        

          

        
KPLC is a single buyer for all the power generated in Kenya and

        

          

        
injected into the interconnected grid for sale to the consumers. The

        

          

        
trading arrangements between KPLC and each of the generators are

        

          

        
governed by a long-term Power Purchase Agreement (PPA) approved by

        

          

        
ERC. Such PPAs comprise capacity charge, energy charge, fuel pass

        

          

        
through and inflation indexed clauses. The retail tariff structure

        

          

        
comprises of a fixed charge, energy charge and capacity charge.

        

          

        

          

        

          

        
On Wednesday 14th April, 2010, while answering a Question by Private

        

          

        
Notice by Hon.

        

          

        
B. Washiali, the Assistant Minister for Energy, Hon. M.M. Mohamud was

        

          

        
not clear on

        

          

        
whether KPLC is a parastatal or not. At one point he informed the

        

          

        
House that KPLC was

        

          

        
a private company with the Government as one of the shareholders. At

        

          

        
another point,

        

          

        
he informed the House that ‘…KPLC is a Government parastatal, but a

        
different

        

          

        
parastatal from other parastatals. It is in a different category with

        

          

        
other parastatals. There are parastatals which are not listed at the

        

          

        
NSE. So this is different to that extent.’ The Government needs to be

        

          

        
clear on whether KPLC is a Government Parastatal or a private company.

        

          

        

          

        

          

        
The Committee notes the importance of KPLC to service delivery in the

        

          

        
country and that

        

          

        
the achievement of Vision 2030 depends on the success of the

        

          

        
electricity sector. It is

        

          

        
evident that the Government largely supports KPLC through guaranteed

        

          

        
loans and profit

        

          

        
plough-backs and also appoints a majority of directors to the

        
company’s Board of

        

          

        
Directors. Further, the Company’s vehicles have blue registration

        

          

        
number plates, a

        

          

        
preserve of parastatals contributing to the uncertainty as to whether

        
KPLC is a

        

          

        
parastatal or a private company. Due to the importance of the

        

          

        
electricity sector in the

        

          

        
country and the regular support offered to KPLC, the Government

        
should not allow

        

          

        
KPLC to be in the control of business people who are motivated by

        
profits at the

        

          

        
expense of the citizens.

        

          

        

          

        

          

        
KPLC could be termed a State Corporation if it was ‘wholly owned or

        

          

        
controlled by the

        

          

        
government or by a state corporation’ in accordance with the

        

          

        
definition proffered in the

        

          

        
State Corporations Act. Following the disposal of shares by NSSF, the

        

          

        
Company does

        

          

        
not meet the requirements stipulated for it to qualify as a state

        

          

        
corporation. Furthermore,

        

          

        
KPLC has not submitted fully to the provisions of the Public Audit

        

          

        
Act, by having its

        

          

        
accounts audited by the Controller and Auditor General and submitted

        

          

        
to the National

        

          

        
Assembly for examination by the Public Investments Committee (PIC).

        

          

        

          

        

          

        
he Controller and Auditor General last submitted audited accounts for

        

          

        
KPLC for the

        

          

        
year 2001/2002. PIC queried the non submission of KPLC accounts for

        

          

        
the subsequent

        

          

        
years in its 12th Report of 2004. Thereafter, accounts for the

        

          

        
financial year 2007/2008

        

          

        
were tabled in December 2009. That notwithstanding, in 2004 PIC

        
examined the

        

          

        
following non accounting issues:-

        

          

        

          

        

          

        
i) KPLC’s pension’s scheme,

        

          

        
ii) Contracts between KPLC and IPPs,

        

          

        
iii) The general financial status of the company and

        

          

        
iv) Supply of treated poles during the Financial year 2004/2005 (13th

        
Report).

        

          

        

          

        

          

        
The Committee therefore recommends that:-

        

          

        

          

        

          

        
i) The Government proceeds with the conversion of some of its 7.85%

        
redeemable

        

          

        
non-cumulative preference shares (87.12 million shares which Treasury

        
has

        

          

        
approved) into ordinary shares at a ratio of 1:1 and retains the

        

          

        
ordinary shares so

        

          

        
as to raise its stake in KPLC to 75% thus qualifying the company as a

        

          

        
parastatal.

        

          

        

          

        

          

        
The Government’s shareholding in KPLC be determined by the shares

        
held in the

        

          

        
name of the Permanent Secretary, Treasury and not other state

        
agencies who

        

          

        
might later on dispose their shares without approval from the Treasury.

        

          

        

          

        

          

        
Before unbundling of electricity generation from transmission and

        

          

        
distribution in the

        

          

        
1990s, there were 5 major players in the power sector, namely Kenya

        

          

        
Power Company

        

          

        
(KPC), Tana River Development Company (TRDC), Tana and Athi Rivers

        

          

        
Development Authority (TARDA), Kerio Valley Development Authority

        
(KVDA) and

        

          

        
KPLC. The initial unbundling comprised first merging TRDC and KPC in

        
1996 to KPC

        

          

        
which changed its name to KenGen in 1998. The second step comprised

        

          

        
consolidating

        

          

        
all the power generation assets, owned by the five (5) parastatals

        

          

        
under KenGen and

        

          

        
the transmission and distribution assets under KPLC. By October 1999,

        
all power

        

          

        
generation assets from KPLC, TRDC, KPC, TARDA and KVDA were

        
transferred to

        

          

        
KenGen at ‘depreciated replacement costs’. Similarly, transmission

        
and

        

          

        
distribution

        

          

        
assets owned by other entities were transferred to KPLC at

        
depreciated

        

          

        
replacement

        

          

        
costs.

        

          

        

          

        

          

        
The Committee recommends that, like the previous unbundling:-

        

          

        

          

        

          

        
i) All assets under the REP since 1973 should be tracked and taken

        
over and

        

          

        
reflected in the books of REA. Currently such assets are owned by the

        
Government

        

          

        
but under KPLC.

        

          

        
ii) All transmission assets should be tracked and taken over and

        

          

        
reflected in the books

        

          

        
of KETRACO. Currently such assets acquired before the formation of

        
KETRACO in

        

          

        
2008, are owned by KPLC while KETRACO will own new assets that it

        
will develop.

        

          

        
KPLC should surrender all transmission assets to KETRACO.

        

          

        
iii) All assets under geothermal exploration and extraction held by

        

          

        
KenGen (including

        

          

        
Olkaria I & II) should be taken over by GDC to avoid the Government

        
competing

        

          

        
with itself.

        

          

        

          

        

          

        
The Committee notes that ERC has failed to deliver on its mandate

        

          

        
especially with

        

          

        
regards to protecting energy consumers. This is reflected in the high

        

          

        
costs of electricity

        

          

        
in Kenya as compared to its neighbours which is a key factor in

        

          

        
driving investors out of

        

          

        
the country. Further, the high electricity costs cause most Kenyans

        
to resort to

        

          

        
traditional sources of energy such as charcoal and firewood, further

        

          

        
depleting our

        

          

        
environment. While unbundling the electricity sub-sector, the

        

          

        
Government intended to

        

          

        
make the electricity clean, quality and affordable which is evidently

        

          

        
not the case.

        

          

        

          

        

          

        
The Committee also notes with concern that under the Energy Act, ERC

        

          

        
is expected to

        

          

        
ensure that the industry players such as KenGen remain profitable and

        

          

        
viable which

        

          

        
impacts negatively on the consumers despite the PPAs guaranteeing

        
reasonable

        

          

        
profits. The Committee therefore recommends that the Energy Act be

        
amended and

        

          

        
that ERC puts in place feedback mechanisms to ensure that demand is

        
met with

        

          

        
reliable, cost effective and high quality energy services in an

        

          

        
environmentally friendly

        

          

        
manner.

        

          

        

          

        

          

        
The Committee further recommends that the Government increase its

        
subsidies for

        

          

        
the transmission and operation costs so that they are not reflected

        
in

        

          

        
the tariffs and the

        

          

        
consumer bills.

        

          

        

          

        

          

        
The Committee notes that the public is misinformed on the operations

        

          

        
of the various

        

          

        
players in the power sector and recommends that the Government carry

        
out public

        

          

        
education to inform the public on the various initiatives and power

        

          

        
players which will

        

          

        
promote transparency in the energy sector. Further, the price

        

          

        
variations reflected on

        

          

        
the consumer bills should be demystified to the public.

        

          

        

          

        

          

        
In conclusion what PS, Ministry of Information and Communications

        

          

        
raises i.e. inviting Hon Rege who is Chairman of Energy and

        

          

        
Information & Communication to shed light on how the Committees

        

          

        
recommendations have been taken up by the relevant institutions.

        

          

        

          

        

          

        
In conclusion and as noted in some earlier debate, energy is an

        

          

        
enabler and the current situation is not sustainable i.e. Kenya is

        

          

        
dominated by petroleum and electricity which are the prime movers of

        

          

        
the modern sector economy, while wood fuel provides energy needs of

        

          

        
the traditional sector including rural communities and urban poor. At

        

          

        
the national level, wood fuel and other biomass account for about 68%

        

          

        
of the total primary energy consumption followed by petroleum at 22%,

        

          

        
electricity at 9% and others including coal at about less than 1%.

        

          

        
This is not sustainable as electricity providing less than 10% of

        

          

        
energy yet we plan to industrialize! The October 2011 National Energy

        

          

        
Conference revealed that even the 20+% oli bill almost 10% goes to

        

          

        
burn in diesel generators to produce the expensive fuel levy

        
reflected

        

          

        
in electricity bills. While making Dr. Ndemo play Presidential

        

          

        
aspirant it was concluded that while electricity has the least Cost

        

          

        
Power Development Plan team doing 20 year rolling plans no such

        

          

        
activity is in the oil sector! Is that by design or its a long term

        

          

        
oversight? Wood (read biomass) never got any country on earth

        

          

        
industrialized and hence government cannot (should not) wait for

        

          

        
Independent Power Producers to invest in energy, as the easiest

        
return

        

          

        
(short term of course) is in charcoal burning, followed by burning

        
oil

        

          

        
(again returns occur in less than a Parliamentary term) not putting

        
up

        

          

        
a nuclear power plant.

        

          

        

          

        

          

        
Best wishes for 2012 to all.

        

          

        

          

        

          

        
David

        

          

        

          

        

          

        

          

        

          

        

          

        

          

        

          

        

          

        

          

        

          

        
On 12/31/11, Solomon Mbũrũ Kamau <solo.mburu@gmail.com> wrote:

        

          

        
Dr. Ndemo,

        

          

        
With due respect, I find your comment on listers' popints to Mr.

        
Mugo

        

          

        
not satisfying (to your expectations). However, in the foregoing, I

        

          

        
understand that most of us were not privy to the conception of the

        

          

        
Vision 2030, and perhaps, we were raisin issues per what we see

        

          

        
happening, for example on energy. Kenya Power as a monopoly enjoys

        

          

        
100% benefit in the power sector, yet in the ccompetitive and

        

          

        
liberalized world, competition thrives when the market is not capped

        

          

        
on one firm. Kenya Power, while being good in blackouts, stills

        
enjoys

        

          

        
support from the government, yet as we speak about achieving the

        

          

        
Vision, energy is the most important aspect driving us towards the

        

          

        
realization of the flashship projects pointed out.

        

          

        
Generally, without education, there is nothing like achieving

        

          

        
development in it's full scale.

        

          

        

            

        

          

        
In my view, I think the contributors interrogating Mr. Mugo did

        
their

        

          

        
level best to make the Vision clear in a layman language, more

        

          

        
sepcifically, Mr. Mugo himself.

        

          

        

            

        

          

        
Regards,

        

          

        

            

        

          

        
Solomon

        

          

        

            

        

          

        

            

        

          

        
On 31/12/2011, bitange@jambo.co.ke <bitange@jambo.co.ke> wrote:

        

          

        
Eric,

        

          

        
I am not done with your questions yet.  On Government blocking

        
investment

        

          

        
in

        

          

        
energy.  This is what we are trying to address: The role of

        
government in

        

          

        
enterprise.  If you go deeper into Schumpeter's theory, you will

        
find that

        

          

        
no government can block an idea or innovation whose time has come.

        

          

        

              

        

          

        
When Graham Bell invented the telephone, the British Post dismissed

        
the

        

          

        
idea

        

          

        
saying there were enough messengers around.  With the invention of

        
mobile

        

          

        
telephony, the land line is undergoing the same fate it brought to

        

          

        
communication early in the 20th century.  This is what is called

        
"creative

        

          

        
destruction".

        

          

        

              

        

          

        
We must understand this theory if indeed we want to survive in the

        
days to

        

          

        
come.  In my recent visit to China, I saw what the future would be
like.

        

          

        
A

        

          

        
city the size of Nairobi is using both solar and wind energy to

        
light up

        

          

        
street lights.  This innovation even in Kenya does not require

        
government

        

          

        
approval.  Further we have enriched the Arab world far too long

        
when we

        

          

        
use

        

          

        
parrafin to power our rudimentally oil lamps.  Instead we should by

        
now

        

          

        
have

        

          

        
provided a simple battery, a solar panel and a micro wind vane to

        
every

        

          

        
household for energy supply.  This will save us billions of dollars

        
that

        

          

        
we

        

          

        
can invest in preventive medical care.

        

          

        

              

        

          

        
Your problem is that you want to replicate what you have seen in

        
advanced

        

          

        
economies.  Your approach would fail.  You must first create the

        
market

        

          

        
through simple understandable solutions.  The demands for energy

        
will then

        

          

        
be incremental such that even if you were to build 10,000 MW you

        
have a

        

          

        
ready market.

        

          

        

              

        

          

        
On colonialism;  This is non sense in my view.  Those who colonized

        
us are

        

          

        
dead and most of those who were colonized are dead too.  We must

        
not

        

          

        
forget

        

          

        
that this happened but our focus should be to build confidence in

        

          

        
ourselves

        

          

        
to face the world.  Take China for example, Japan dominated them

        
but they

        

          

        
have not spent their lives grumbling about the past.  They have

        
faced up

        

          

        
to

        

          

        
Japan and today they compete on an equal footing.

        

          

        

              

        

          

        
Although parts of Africa are still under the French colony, you

        
must be

        

          

        
grateful that the British colonized us.  The British were only

        
interested

        

          

        
in

        

          

        
domination and material wealth.  The French's integration approach

        
still

        

          

        
has

        

          

        
implications on their colonies.  Indeed as I write there are

        
Africans in

        

          

        
Africa who consider themselves French.  There are African states

        
that

        

          

        
still

        

          

        
pay French tax.  Mineral resources on African continent still

        
belong to

        

          

        
France.

        

          

        

              

        

          

        
I have nothing against the French.  If our Francophone brothers

        
feel

        

          

        
comfortable this way, let it be.  The best we can do is to face up

        
to our

        

          

        
colonial power, leverage on the Common Wealth

        

          

        
Association to build a new alliance that benefits all of us.

        
Together we

        

          

        
have more voting power and ability to lead the agenda.

        

          

        

              

        

          

        

              

        

          

        
Regards.

        

          

        

              

        

          

        
Ndemo.

        

          

        

              

        

          

        
Sent from my BlackBerry®

        

          

        

              

        

          

        
-----Original Message-----

        

          

        
From: "Eric M.K Osiakwan" <emko@internetresearch.com.gh>

        

          

        
Sender:
kictanet-bounces+bitange=jambo.co.ke@lists.kictanet.or.keDate:

        

          

        
Fri,

        

          

        
30 Dec 2011 15:51:57

        

          

        
To: <bitange@jambo.co.ke>

        

          

        
Cc: KICTAnet ICT Policy Discussions<kictanet@lists.kictanet.or.ke>

        

          

        
Subject: [kictanet]  Vision 2030: ICT and Other Sectors Converged

        
(Day

        
3)

        

          

        

              

        

          

        
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