NAIROBI, Kenya – Kenya Power is facing mounting financial pressure as unpaid electricity bills from county governments hit Sh5.67 billion, highlighting persistent challenges in revenue collection, according to the latest report by Auditor General Nancy Gathungu.
The arrears, representing nearly 15 per cent of Kenya Power’s total outstanding bills, have accumulated over the years, with management efforts to recover the money yielding limited results.
“The receivables balance includes an amount of Sh5,679,805,786 due from county governments… which continue to accumulate,” Gathungu noted in her review of the utility’s performance for the year ended June 2025.
Despite repeated warnings, Kenya Power has struggled to collect the debts, with some counties, including Nairobi County, disputing the amounts.
In several confrontations, Nairobi County has even resorted to unusual measures, such as dumping sewage at Kenya Power offices and clamping vehicles, to compel the utility to restore electricity supply despite outstanding bills.
A closer look at the accounts of 10 counties revealed a discrepancy of Sh2.37 billion, with Kenya Power’s records indicating Sh3.94 billion owed, while the counties’ figures stood at Sh1.57 billion.
The arrears have directly affected the utility’s bottom line. Electricity revenues fell five per cent to Sh219.28 billion, while net profit dropped 18.7 per cent to Sh24.47 billion in the same period.
Kenya Power attributed the decline to reduced revenue collections and lower foreign exchange recoveries, even as the shilling remained largely stable against the US dollar.
To address the growing debt, Kenya Power transferred Sh5.69 billion in unpaid bills to debt collection firms during the year.
Additionally, prolonged payment defaults have forced the utility to write off Sh19.28 billion as of June 2024 and seek Treasury approval to write off a further Sh4.19 billion owed by deceased sole proprietors and dissolved or untraceable companies.
The escalating arrears underscore the financial vulnerability of Kenya Power and raise concerns about the sustainability of electricity supply, as unresolved disputes between the utility and county governments continue to hamper operations.
