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Kenya can learn from TZ on cutting energy costs 

Kenya can learn from TZ on cutting energy costs 
A plant at the Mnazi Bay Gas Field in the Mtwara region of southeastern Tanzania. PHOTO/Energy Capital & Power

Kenya’s persistently high cost of energy is fast becoming a national liability and a pain to the economy as it not only stifles growth but also makes life unbearable. 

At a time when the price of fuel soared above that of landlocked neighbours like Uganda and Rwanda — both of which import their fuel through Kenya’s own Mombasa port — it defies logic that the country continues to grapple with escalating living costs without dealing with the elephant in the room. 

If economic growth is to be revitalised and industrial competitiveness restored, Kenya must urgently bite the bullet and take a cue from Tanzania’s bold steps in reducing energy costs, especially through natural gas. 

Tanzania’s decision to use natural gas to power vehicles is already paying off, delivering cleaner, cheaper mobility to its citizens. 

Uganda, too, is exploring ethanol blending in fuel to reduce pump prices.

Meanwhile, Kenya remains stuck in an expensive cycle of hydro and diesel power generation, with minimal innovation or diversification in fuel policy. 

This is as private power producers and international importers of fuel take home billions as the government spikes costs due to high costs of fuel and energy. 

Questions abound: if landlocked countries can reduce energy costs despite relying on Kenya’s own port for imports, what’s holding Nairobi back? 

That aside, there is a window of opportunity that Kenya must not let slip after Nigeria’s First Exploration and Petroleum Development Company signed an MoU with the Tanzania Petroleum Development Corporation to jointly develop the Mnazi Bay North Gas prospect in southern Tanzania. 

The project includes constructing a 340km subsea gas pipeline from Dar es Salaam to Mombasa — a potential game-changer for Kenya’s energy future.

This pipeline, the first of its kind in East Africa, promises a clean, affordable and scalable energy source for Kenya’s power producers, manufacturers, and households. 

Its impact would be especially significant in Mombasa and Nairobi, where energy costs have long stifled industrial growth and development.

Kenya’s dependence on diesel and the intermittency of hydro have not only inflated electricity bills but also slowed the country’s transition to a sustainable and resilient energy mix. 

Instead of playing catch-up, Nairobi should embed itself in this regional energy ecosystem and fly with it. 

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