NAIROBI, Kenya – Kenyan businesses grappling with recurring blackouts should not expect any compensation for their losses, Energy Cabinet Secretary Opiyo Wandayi has said, citing legal limitations that protect Kenya Power from liability over financial disruptions caused by outages.
Speaking before the Senate Energy Committee on Friday, Wandayi made it clear that the Kenya Power and Lighting Company (KPLC) is only obligated to compensate consumers in cases where electricity supply lines cause direct physical damage — not for consequential economic losses.
“The compensation mechanism laid out in the Energy Act 2019 applies strictly to damages caused by electrical supply lines, not to income lost due to power outages,” Wandayi stated.
His remarks came in response to Kisumu Senator Tom Ojienda, who had sought to know whether the ministry had considered measures to cushion businesses, manufacturers, and households affected by unreliable electricity supply.
Despite acknowledging the hardship frequent blackouts cause — particularly for small businesses and industries — the CS reiterated that current legislation does not provide a pathway for redress related to lost productivity or revenue.
Senators Question Rising Blackouts
Senators, led by Committee Chairperson and Siaya Senator Oburu Odinga, expressed concern over the growing frequency and severity of blackouts across the country, which have sparked outrage from consumers and disrupted daily life and commerce.
In his defence, Wandayi blamed a range of technical issues, including transient faults on the grid, equipment failure, scheduled maintenance, and power rationing during peak hours due to generation deficits or network strain.
Notably, Kenya’s national power generation capacity currently stands at 3,080 megawatts, compared to a peak demand of 2,316 megawatts — suggesting that supply far outweighs demand, yet outages persist.
“Our grid covers nearly 320,000 kilometres, 80 per cent of which comprises distribution lines, both medium and low-voltage,” he said, pointing to infrastructure strain as a persistent challenge.
Rainy Season Concerns and System Upgrades
Senator Ojienda further raised concerns about Kenya Power’s preparedness for emergencies during the rainy season, which often sees increased outages due to storms, fallen trees, and flooding.
Wandayi responded that KPLC is implementing ongoing infrastructure upgrades, including preventive maintenance, vegetation clearance along power lines, and improvements to substations to enhance resilience.
He also cited ongoing efforts by the Kenya Electricity Transmission Company (KETRACO) to build new transmission lines to improve power delivery to high-demand regions.
“KPLC is continuously assessing and enhancing the capacity of its lines and substations to meet the country’s growing demand,” the CS said.
KPLC’s Five-Year Strategy
In a bid to modernize and diversify its operations, Wandayi revealed that KPLC plans to raise Sh200 billion over the next five years under its 2023–2028 strategic plan.
Part of the strategy includes expanding into consultancy services, training, and high-voltage equipment maintenance to boost revenue streams.
The Senate committee is expected to continue engaging the ministry and KPLC on service delivery, grid reliability, and the long-term sustainability of Kenya’s power infrastructure.
