KENYA Law and Practice Contributed by: Mary Waithiegeni Chege, Mary Anne Wachira and Joy Odhiambo, EMSI & Asssociates
controls such as load curtailment during maintenance. Overall, the framework promotes market access while safeguarding reliability and operational integrity. 5. Distribution 5.1 Constructing and Operating Electricity Distribution Facilities All the laws governing the construction and operation of electricity generation and transmission segments apply to distribution (see 4.1 Constructing and Oper- ating Transmission Lines and Associated Facilities ), together with the Kenya National Distribution Grid Code. The approval process and timelines are similar to those described for generation and transmission facilities (see 4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities ). 5.3 Terms and Conditions Imposed in Approvals to Construct and Operate Electric Distribution Facilities In addition to the general terms and conditions, spe- cific conditions that need to be adhered to by a dis- tribution licensee include: • building, maintaining and keeping in a good state of repair suitable and sufficient electric supply lines for purposes of enabling supply to be given in the area of supply specified in the licence; • operating an efficient, safe, co-ordinated and eco- nomical distribution system; • where applicable, complying with the directions of the system operator; • providing non-discriminatory open access to its distribution system for use by any licensee, retailer or eligible consumer upon: 5.2 Regulatory Process for Obtaining Approvals to Construct and Operate Electricity Distribution Facilities (a) the payment of use-of-system charges; and (b) compliance with such minimum requirements of the distribution licensee; and • ensuring as far as technically and economically practicable that the distribution system is operated
with enough capacity (and, if necessary, aug- mented or extended to provide enough capacity) to provide network services to persons authorised to connect to the network. Under the Energy (Reliability and Quality of Electrical Energy Supply and Service) Regulations, 2021, distri- bution licensees must maintain high reliability stand- ards, ensuring that outages are limited in frequency and duration, while the Energy (Electricity Market, Bulk Supply and Open Access) Regulations further require distribution licensees to facilitate the efficient, reliable and safe wheeling of electricity within the mar- ket framework. The process for amendments or the relaxation of licence terms is similar to that described for genera- tion facilities. 5.4 Eminent Domain, Condemnation or Expropriation Rights to Construct and Operate Electricity Distribution Facilities The provisions relating to transmission facilities are applicable to distribution facilities (see 4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities ). 5.5 Monopoly Rights for Electricity Distribution Entities Like transmission licensees, a distribution licensee has exclusive monopoly rights to provide distribu- tion services within a specified geographical territory, subject to the rights of eligible consumers, who are entitled to choose any licensee to be their supplier of electrical energy for their own use upon the payment of use-of-system charges. The Energy (Electricity Market, Bulk Supply and Open Access) Regulations provide that, for grant of open access, the load shall not be less than 1 MVA in the distribution system. The Energy Act contemplates that the distribution sys- tem within a licensee’s licensed area may consist of the electric supply lines planned and built by REREC or the relevant county government, in addition to those planned and built by the licensee.
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