Sustainable Energy and  the Law in Kenya

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Sustainable Energy and the Law in Kenya

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1. Sustainable Energy and the Law in Kenya Dr. Albert Mumma Senior Lecturer Faculty of Law, UoN

2. POLICY & LEGAL FRAMEWORK Defining Policy/Law Sustainable Energy as the Policy Objective The three pillars of Sustainable Energy Facilitates Economic Development Socially Equitable Environmentally benign Kenyas policy and legal framework fails all the three tests.

3. FACILITATING ECONOMIC DEVELOPMENT To facilitate economic development energy must:- facilitate generation/supply of energy be cheap/cost effective be reliable Facilitating generation/supply requires Easy and transparent licensing procedures Tax incentives and subsidies for sustainable energy Guaranteed market to generators Fair price for generators Competition in the market place

4. THE LAW ON GENERATION AND SUPPLY (1) The Electric Power Act (1997) (principal statute) Creates a bureaucratic licensing system Creates a state dominated supply monopoly (KP & L Co.) Creates a weak regulatory framework Leads to high tariffs

5. THE LAW ON GENERATION AND SUPPLY (2) Discourages small scale energy generators Fails to provide links with other licensing requirements (water permits/society registration). Fails to provide for tax incentives and subsidies Is implemented in an opaque and unfriendly manner

6. SOCIAL EQUITY Social Equity Requires: that clean/cheap energy be available to all members of society Tariffs should subsidize poor Benefit Social Utilities e.g. schools /hospitals/charities

7. KENYAS ENERGY LAW AND SOCIAL EQUITY Provides for the Rural Electrification Fund But this fails the test because: Its administration lacks transparency and accountability No provision for the urban poor Tariffs do not subsidize consumption by the poor and social utilities. Forces the poor to rely on unhealthy, expensive energy Big powerful users do not pay so increasing burden on small users Oppression of small consumers, arbitrariness

8. ENVIRONMENTAL IMPACT OF ENERGY POLICY/LAW Environmental impact should benign because policy/law encourages use of clean energy penalizes use of dirty/damaging energy Forces polluter to pay Should promote wind, solar, biomass

9. KENYAS LAW ON ENERGY AND ENVIRONMENT (1) Law scattered across The Electric Power Act The Water Act The Petroleum Act The Forests Act The Environmental Management and Coordination Act The Physical Planning Act

10. KENYAS LAW ON ENERGY AND ENVIRONMENT (2) Multiple of licensing requirements, institutions and standards No shared vision on coordination Environmentally benign small scale energy disadvantaged Environmentally damaging energy (fossil fuels, large scale hydro) favoured Adds to the bureaucratic overload.

11. CONCLUSION Develop a clear policy on sustainable energy Policy should be based on the above three pillars Amend the laws on energy to align it with new policy

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