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 company says in its latest notification of tender awards.
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.
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, according to Kenya Power.
Most of the stations are located more than 700 kilometres from Nairobi and in mostly arid and semi-arid northern Kenya counties such as Wajir, Mandera and Turkana, which consume 330,000 litres of diesel per month, being the largest amount of diesel use, followed by Marsabit with 200,000 litres.
“The duration of the contract will be for 24 months from the date of initial fuel delivery. Delivery of fuel will be made pursuant to orders made by the procuring entity from time to time,” Kenya Power says in the tender documents. Read more
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