Electricity distributor Kenya Power has awarded National Oil Corporation of Kenya (Nock) a Sh4.85 billion tender to supply low sulphur diesel for its off-grid power stations in the next two years.
The move signals that consumers will continue to bear the burden of higher priced electricity, which comes with the inclusion of the cost of diesel.
According to Kenya Power, Nock has won the tender to supply 1.84 million litres of diesel every month to run the 30 thermal power stations over the next two years.
Kenya power said that The duration of the contract will be for 24 months from the date of initial fuel delivery and that the Delivery of fuel will be made pursuant to orders made by the procuring entity from time to time.
The deal comes despite Kenya’s focus on green and cheap sources of power such as wind and solar.