Kenya Power's offices on Aga Khan Walk, Nairobi. The utility firm is planning to deploy debt collectors to counties that have defaulted on their electricity bills running into billions.
Kenya Power is readying to deploy debt collectors to counties that have defaulted on their electricity bills with Nairobi, Mombasa, and Kiambu topping the list of defaulters.
The utility has issued a tender for debt collectors to help it recover Sh3.53 billion that the devolved units have failed to pay for their power use.
“KPLC is calling for the provision of debt collection services that entail the assignment of a specific debt to a private debt collector. The total debt is Sh3,536,500,000,” said Kenya Power in the tender document.
“Payment of the debt will be done directly to KPLC by the debtor and the private debt collector paid commission for such collection.”
Nairobi owes the utility a total of Sh1.35 billion, which is 38.2 per cent of the total debt making it the largest defaulter among the 47 counties.
The capital city is followed by Mombasa, which owes Sh296 million, and Kiambu, which has failed to pay Sh217 million.
Other top defaulters are Elgeyo Marakwet (Sh190 million), Machakos (Sh180 million), Kisumu (Sh144 million), and Kilifi (Sh131 million).
Meanwhile, counties that have the smallest share of defaults are Lamu and Tana River, which have both failed to pay Sh1 million, Mandera (Sh1.2 million), Tharaka Nithi (Sh1.5 million), and Turkana (Sh1.8 million).
The debt has been accumulating for years, which has worried the State-owned utility, forcing the national government to step in to try to force counties to settle the arrears.
This is however not the first time that Kenya Power is resorting to private debt collectors.
The power firm has previously hired debt collectors, who are usually paid a portion of the amount of money that they manage to recover from the defaulters. Kenya Power has been facing an increasing problem of defaults, especially from postpaid customers.
