Kenya Power will soon start distributing energy to only large, commercial and industrial consumers. In the latest reforms, The Ministry of Energy has proposed that the parastatal be split to enhance efficiency and cut costs.
According to the proposal, the Rural Electrification and Renewable Energy Corporation (Rerec) will take over distribution of electricity to households to allow Kenya Power to focus on serving the bigger revenue earners such as industrial consumers, who account for more than half of its income.
“Reconfigure KPLC and Rerec across consumer segments so that KPLC is positioned to serve large commercial and industrial consumers, while Rerec is positioned to serve the social mandate for household consumers,” the paper published by Energy Principal Secretary Gordon Kihalangwa recommends.
Currently, Rerec is tasked with the Rural Electrification programs and the adoption of green energy options with the exception of geothermal.
The implementation of the proposed reforms is however, subject to public participation.
“We’re seeking stakeholders’ view on this matter after which we will develop a work plan and timelines of implementation. It is work in progress,” Dr. Kihalangwa said.
The proposal also seeks to have Kenya Power Employees seconded to Rerec to aid in the implementation of the plan. Kenya Power will also undergo an audit to aid in the transition.
According to the latest data by the Energy and Petroleum Regulatory Authority (Epra), Kenya Power increased its customer base by 317,296 in the six months to December 2021.
By the end of the previous year, the utility had 8.59 million users, up from 8.27 million in June 2021, according to Epra. The extra clients contributed to an 8.7% increase in electricity unit sales, to 4,562 Gigawatt hours.