Tatu City, Ministry of Energy meet over power regulations

18 September

Seeking to streamline tariffs

Tatu City, Kenya, 18 September 2023Tatu City, the 5,000-acre mixed-use Special Economic Zone (SEZ), is in dialogue with the Ministry of Energy and Petroleum and the Energy and Petroleum Regulatory Authority (EPRA) to ensure power tariffs are streamlined for all power users. Tatu City Power Company SEZ Limited, the power company at Tatu City, supplies more than 75 businesses, 4,000 residents and 4,500 students within the new city on Nairobi’s doorstep.

The discussions, inaugurated by Principal Secretary, Hon Alex Wachira during a recent visit to Tatu City, covered current and proposed thresholds for metering voltages and tariffs for SEZs in Kenya, following the gazettement of SEZ tariffs. The SEZ-specific energy tariffs currently apply to SEZs connected and metered at 220kV and 132kV. A proposal was given to EPRA, the energy sector regulator, to accelerate the promulgation of the various draft energy regulations.

PS Wachira highlighted the government’s commitment to encouraging investments in Kenya: “We understand the importance of more investors coming to Kenya to power demand, generation and job opportunities for Kenyans. We are working on the best way to address citizens’ concerns about the rising power costs to reduce operation costs for businesses and the daily costs for households.”

PS Wachira also pointed out the government’s accomplishments in improving power reliability and capacity, deploying robust infrastructure in IT and road networks and nurturing a skilled workforce to attract Foreign Direct Investment (FDI).

“Tatu City showcases Kenya’s appeal for FDI, including data centres and light industries, which are heavy power consumers,” said Alex Kahu, Deputy Country Head of Rendeavour, the owner and developer of Tatu City. “We aim to provide a favourable business environment that meets investors’ expectations. Our commitment is to make Kenya an attractive destination for new investment opportunities.”

Tatu City has invested more than KES 40 billion in infrastructure, including a 135MVA-66/11kV substation, solar photovoltaic power plants for renewable energy generation, 31km of medium voltage lines, 50km of underground low voltage and medium voltage network, distribution transformers and modern street lighting solutions.

Tatu City’s power uptime is currently above 99%, a result of the activation of the city’s 66/11kV 135MVA substation, which is an unprecedented private investment in East Africa. Power demand at Tatu City is accelerating as more businesses and residents move to the city. Tatu City has an integrated utilities approach for residents and business owners. In addition to power, there is the world-class provision of water, sewerage and ICT.

Aligned with sustainability goals, the Ministry of Energy is steering the country toward using 100% renewable energy by 2030. This effort resonates with the environmental and sustainability goals of businesses in Kenya and globally.

Kenya’s first operational SEZ, Tatu City, has welcomed more than 75 companies to its business-friendly location, including Dormans, Copia, Cooper K-Brands, Grit Real Estate Income Group, Twiga Foods, CCI Global, Freight Forwarders Solutions, Friendship Group, Davis & Shirtliff and KWAL.