Kenyans Forced To Pay Ksh5.06 Billion More Over Electricity Theft

Kenyans paid at least Ksh5.06 billion to Kenya Power in the year ended June 2021 as a result of electricity theft, according to a report by Auditor-General Nancy Gathungu.

Some of the losses occur due to leakages from electricity bought from generators such as KenGen that does not reach homes and businesses, known as system losses.

Initially, Kenya Power used to charge consumers 14.9 percent before the Energy and Petroleum Regulatory Authority (Epra) allowed the utility company to charge 19.9 percent of the units it buys from generators.

In the year ended June 2021, Kenya power experienced system losses amounting to 24.14 percent of the units bought from generators, which cost consumers Ksh20.1 billion.

“These losses contribute to high power charges to the consumers since the industry regulator allows the company to charge up to 19.9 percent of the power losses to consumers,” the Auditor-General said.

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Kenya Power bought 12,131 gigawatt-hours (GWh) in the period under review period but only sold 9,203 GWh or 75.86 percent of the units, recording a loss of 2,928 GWh or 24.14 percent.

According to Gathungu, the excess power loss constitutes unaccounted for power which though the cost is not passed on to the consumers, it increases the operating costs of the company.

“The company has remained in a negative working capital position for the fifth consecutive year. The board of directors and management in the past and in the year under review indicated strategic initiatives that were being undertaken to improve the financial results of the company,” the Auditor-General said.

Other factors occasioning the losses include meter tampering, outright theft of electricity, and  vandalism of lines and transformers.

Kenya Power recorded a net profit of Ksh1.4 billion in the year ended June as compared to a net loss of Ksh939 million recorded the previous year.

In the year under review, the company’s liabilities stood at Ksh116.1 billion, dwarfing the current assets of Ksh49.6 billion.

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