Energy (Rural Electrification Programme Fund) Order, 2008 (L.N. No. 92 of 2008)

2. In this Order, unless the contex t otherwise requires- lnleopmation. "Authority" means the Rural Electrificalion Authority established under section 69 of the Act; "Board" means the Board of Directors of the Authority established under section 68 of the Act; "Pund"means the Rural hk:ctriflialtion Flmd established by paragraph 5; "levy" means the Rural Electrification Programme Levy imposed under paragraph 3; and "licensed distributor" means a person licensed by the Energy Regulatory Commission in accordance with the requirements of section 27 'ofthe Act

3. There is imposed a levy 10 be known as the Rural Electrification Progratullle Levy which shall.comprise five per centum of aU -electricity consumed In the country.

4. (I) A licensed distributor shall be a remitter for purposes of collectJng the levy. (2) A licensed distributor shall, on orbefore the last day of each month, renrit to the Authority, the amount received by way of the levy duri.ng the immediately preceding month. (3) A licensed distributor shall maintain or cause to be maintained a iJl0Ilthly record of the sales of electrical energy and levy received in respect thereof and make available for inspection by the Authority in accordance with paragraph 12. (4) If a licensed distributor fails to remit any amount due and payable by way of the levy on or before the date prescribed in subparagraph (2) a sum equal 10 three per centum of the amount shall be added to tbe amount ~ for eeeh ntOJIth or part thereof during which any amount due remains unpaid.

5. There is established a Fund to be known as the Rural ~fication Programme Fund .

6. The object and purpose for which the Fund • .established sball ~and purpoIC uf the ."finance provision of electricity to- Fund. (a) rural areas; and (b) omer areas considered econom~ ull'riable for electrification by licensees:

7. The sources of the Fund are as provided.,. section 79 (2) Souroeuf the FlJIld. of*Act

8. The Authority shall open a special ~ into whiCh all ....es dUe10 the Fund shall be paid.

9. There shall he paid out of the Fund such.-ies as the Board Paymentsout uf llIe Fund. Dlil!J.' -fIOIU Olllt: LO unK:. lIJ1l'fOVCfOJ pUJ~ of tIlc:~gnunmcand for ._sign, construction, equipment for rural elec*rifir3tion projects. 10 384 Kf:TI)IU Sub!iidiary ugulatwn. 2008 a licensed distributor or to such other contractor as the Board may consider appropriate for the area in which the project is carried OUl JO. The activities or undertakings financed by the Fund shall be "nnual approval ofbudpl. on the basisof annual work programmes and cost estimates which shall be prepared by the Authority and approved by the Board. I J. All receipts, savings and accruals to the Fund and the balance of the Fund at the end of each fllfliilcial year shall be retained for the purposes for which the Fund was established.

12.The Authority shall- (a) adm}n'ster me 'fund; (b) inspect the records of the sales of electrical energy and levy maintained by a licensed distributor in accordance with paragraph 4(3); (c) keep books of account and 0Iber books,and records in relation to the Fund of ai' the various activities and undertakiJ,8S financed from the Fund: and (d) <;ausc:; regular- iludit3 of sUlOh books and ~rdsto be; undertaken.

13. The Electric Power (Rural Electrification Programme Levy) Revoc:aIion U I..N.96iI998. Order, 1998 is revoked, Dated the 26th June, 2008. KJRAITU MURUNGI, Minister for EMrgy.