Kenya Power moves to acquire 19,103 smart meters to seal revenue leaks

Kenya Power is ramping up efforts to tighten revenue collection from its biggest electricity consumers through the planned purchase of more than 19,000 smart meters, a move aimed at reducing losses and supporting a growing number of commercial and industrial customers.

The power distributor has begun the process of acquiring 19,103 smart metering units, most of which will be installed among large electricity users. The investment forms part of a wider push by the utility to modernise its systems, improve billing efficiency and strengthen monitoring of power consumption.

The order includes 18,000 three-phase smart meters, 267 units rated at 300/5 Amperes, 200 units rated at 200/5A and several other smart metering devices with capacities ranging between 200/5A and 11kV 400/1.

Kenya Power says demand for the equipment has risen alongside growth in the number of businesses and industries connected to the national grid.

“Most of these meters are for the large power customers. We have a growing customer base that requires these meters,” General Manager for Supply Chain and Logistics John Ngeno said on Friday.

The three-phase smart meters are commonly used by customers with heavy electricity needs, including factories, commercial premises and large housing projects. The technology allows users and the utility to track electricity use in real time while also enabling remote meter reading and automated communication with the power network.

Data from Kenya Power shows that by June last year, the company had 15,706 large and small commercial customers. Although this category represents only a fraction of the utility's total customer base, it contributes more than half of annual electricity sales.

The planned purchase comes as the government pursues reforms aimed at increasing electricity access across the country. The reforms are linked to a proposed $500 million (Sh64.7 billion) sustainability-linked bond that is expected to support key development targets.

Under the arrangement, the National Treasury has indicated that the cost of the financing will depend on Kenya's progress in meeting agreed goals. Among the targets is raising rural electricity access from 67.9 per cent in 2023 to 81.8 per cent by 2030.

Treasury projections show the country could outperform that target if rural electrification reaches 94.4 per cent within the same period.

Kenya Power currently supplies electricity to more than 10.2 million customers nationwide. However, the company has continued to grapple with revenue losses arising from billing disagreements and unpaid electricity bills, prompting renewed focus on metering technology.

In its latest annual report, the utility says prepaid and smart meters remain among the key tools being deployed to improve collections and limit losses, especially among high-consuming customer groups.

“The company continues to install prepaid and smart meters as strategies to minimise the risk of non-collection,” Kenya Power says in its latest annual report.

The new meters are expected to support Kenya Power's efforts to safeguard revenue while advancing the government's broader agenda of expanding electricity access and attracting lower-cost climate-linked financing.