Lamu coal plant to cost power users Sh37bn yearly

Electricity consumers will pay a fixed charge of Sh37 billion per year through their bills towards Lamu coal-fired power plant, irrespective of whether it generates power or not.

The Treasury’s latest budget policy statement indicates that $360 million (Sh37 billion) will be paid yearly to the developers, Amu Power Company, as “annual fixed capacity payments”.

The planned payout is Sh5 billion more than what it cost to build the 50km Thika superhighway.

Homes and businesses will pay the hefty bill for the 1,050-megawatt plant through their monthly bills to cover the developers’ fixed expenses on the project, regardless of whether they generate electricity or not…

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