Kenya Power is grappling with a growing crisis as county governments continue to delay payment of electricity bills, with the total arrears now reaching Sh5.67 billion.
The mounting debt, which forms nearly 15 per cent of the company’s overall unpaid bills of Sh39.03 billion, has put further strain on the State-owned utility and exposed longstanding tensions between the firm and county administrations.
The latest review by Auditor-General Nancy Gathungu highlights the persistent challenges in recovering the money.
She notes: “The receivables balance includes an amount of Sh5,679,805,786 due from county governments in respect of unpaid electricity bills from the 47 county governments, which continue to accumulate. Management efforts to recover the amounts have not yielded favourable results.”
Kenya Power’s finances show the impact of the arrears. Electricity revenue fell by five per cent to Sh219.28 billion, while net profit declined by 18.7 per cent to Sh24.47 billion.
The utility linked the drop to reduced collections and lower foreign exchange recoveries during a year when the shilling remained largely stable against the dollar.
Unpaid bills have long been a source of conflict. Counties have challenged the amounts, and some have taken unusual measures to resist payment.
Nairobi County, for instance, has on several occasions dumped sewage at Kenya Power offices and clamped the utility’s vehicles to pressure them into restoring electricity, despite accumulating debts.
These confrontations have forced Kenya Power to reconnect power before full settlements were reached.
A closer look at the debts owed by ten counties reveals a sharp discrepancy of Sh2.37 billion.
Kenya Power recorded a total of Sh3.94 billion in arrears, while the counties reported only Sh1.57 billion, illustrating the disagreements that complicate recovery efforts.
In response, the company has turned to debt collection agencies. During the year ending June 2025, Kenya Power transferred Sh5.69 billion in unpaid bills to these firms in a bid to recover part of the money.
The ongoing struggle has also led the utility to write off significant sums.
By June 2024, Kenya Power had written off Sh19.28 billion, and in the following year, it requested the National Treasury’s approval to write off an additional Sh4.19 billion from deceased proprietors and companies that cannot be traced or no longer exist.
The rising arrears, persistent disputes, and unusual pushback from counties underscore the growing challenge Kenya Power faces in balancing revenue collection with service delivery.
