Kenya Power has been given one month to present a report to the Ministry of Energy and Petroleum detailing the reforms it is implementing to enhance operational efficiency and reduce energy costs for consumers.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi also requested that the utility company provide a plan for improving liquidity and strengthening its balance sheet, with the aim of returning to sustainable profitability.
Kenya Power reported a profit after tax of Sh319 million for the half-year period ending December 2023, following an increase in electricity sales. This marks a recovery from the Sh1.1 billion loss recorded during the same period in 2022, reflecting a turnaround after challenging years. The company attributed its profitability to revenue growth driven by higher electricity sales and the implementation of a cost-reflective tariff.
“I have instructed the board to urgently embark on an institutional reform pathway and report back to the Ministry, covering key areas,” Wandayi stated during his first visit to Kenya Power headquarters and a tour of its infrastructure.
The board and management have been tasked with updating the ministry on project challenges, resource needs, completion timelines, accountability measures, and expected outcomes.
The ministry is particularly focused on Kenya Power’s strategy for reducing technical and commercial losses, with a goal to decrease current loss levels from 24% to the tariff-setting allowable level of 19.5% within three years.
Wandayi also requested a report on the technical, operational, and human capital capacity of the National Control Center. This includes power infrastructure configuration, power system protection, and generation mix decisions, all aimed at proactively managing system disturbances and preventing major outages, such as the recent one on Friday.
Additionally, Wandayi emphasized the need for Kenya Power to enhance its customer service strategy by utilizing the Integrated Customer Management System at the National Customer Call Centre. This is to ensure that customer complaints are resolved within the timelines outlined in the KPLC Service Charter, and that power outages meet agreed performance targets.
Wandayi also highlighted the importance of strengthening Kenya Power’s supply chain and logistics strategy to address ongoing shortages of critical materials like transformers, meters, fuses, and poles. These essential materials must be optimally stocked to efficiently address customer complaints when needed.
