Kenyans owe KPLC 5 Billion in unpaid electricity bills

Kenya Power Token meter

Kenya power has sort debt collectors in the sh 5 billion outstanding bills recovery from clients disconnected from National grid.

This is partly in line with new electricity distribution strategy that seeks to safe guard the National grid from illegal connections that has starved the company of revenue, hence drop in the earnings.

Currently the company has an outstanding sh 20 billion unpaid bill, however shs 5 billion is the debt that has accumulated over the year.

The debt is owed by customers who cancelled their accounts on request and those whose accounts were terminated for defaulting, this is according to documents seen by Business daily.

“The Kenya Power requires debt collection services for an outstanding finalized debt of Sh5.2 billion,” said Kenya Power in a tender notice.

 Sh2 billion of the debt is owed by customers in Nairobi,

 Coast Region owe Sh845.7 million.

North Eastern Kenya customers have not paid Sh620.8 million.

 Western Kenya Sh386.9 million

South Nyanza Sh343.07 million.

Most of the debt dates back from earlier years up to the month of December, said Kenya Power.

It currently has about 7.4 million customers, with new connections in rural Kenya where revenues are low on muted demand.

More than half a million customers, the company said, had failed to pay electricity bills in the three months to June, pushing new defaults by Sh3.9 billion.

Kenya Power is seeking to lower the debt boost sales and recovery from profit slump.

It has issued its third profit warning in a row, citing reduced electricity consumption due to coronavirus control measures and rising cost of buying wholesale power from firms like KenGen.

The alert means its net earnings will decline by at least 25 percent of last year’s profit of Sh262 million — worst in a record 16 years..