NAIROBI, Kenya, Mar 5 – Head of Public Service Felix Koskei is expected to convene a meeting on Wednesday aimed at addressing the disputes between the Nairobi County Government and Kenya Power over substantial debts amounting to billions of shillings.

Appearing before the National Assembly Committee on Administration and National Security on March 3, Nairobi Governor Johnson Sakaja revealed that, in an effort to resolve the escalating tension between the two public entities, the Office of the President, through Koskei, called for dialogue between Energy Cabinet Secretary Opiyo Wandayi, himself, and Kenya Power.

Tensions escalated between the two government institutions following a recent incident in which garbage was dumped at the Kenya Power and Lighting Company (KPLC) headquarters, causing a public outcry.

“We are now sitting around the table, and I am glad we will now have a silver lining because we are respecting each other during the discussions,” remarked the Nairobi Governor.

The ongoing payment dispute between Nairobi County and KPLC stems from a historic claim that Kenya Power owes the county government approximately Sh4.9 billion.

This debt originates from unpaid rates for power infrastructure and easements, such as electrical power supply, water, and sewage systems.

According to the city governor, Kenya Power had previously gone to court in 2017 to challenge the payment requirement, but the case was dismissed by the courts, which reinforced the obligation for the power company to pay.

Despite these claims, Sakaja emphasized that Nairobi County is committed to resolving the financial dispute in a manner that is fair to all parties.

He pointed out that during his tenure, the county has engaged in joint verification exercises with Kenya Power to reduce the disputed amount owed by the state agency from an initial Sh3 billion to a more manageable Sh1.5 billion.

“The bulk of the debt is not from City Hall, nor from our hospitals, but rather from street lighting services, which is a critical security concern for Nairobi. We pay for the lighting in the entire city. If KPLC chooses to cut off power, it affects security, and we cannot allow that to happen,” Sakaja explained.

As the negotiations continue, Kenya Power threatened that electricity bills could rise by 30 percent if the utility firm is forced to pay counties for wayleave charges.

Speaking during a meeting with the Editors Guild on March 5, Kenya Power Managing Director, Joseph Siror, stated that the charges would ultimately be passed on to consumers.

“Kenya Power has over 319,000 kilometers of power lines across all 47 counties. The introduction of wayleaves on power lines will impact retail tariffs. Under the proposal to charge wayleaves on electricity infrastructure at a cost of Sh200 per meter, this translates into Sh63.8 billion per year. This is approximately 30% of the energy sector’s revenue requirements, which must be recovered from the monthly electricity bills,” he said.

Siror indicated that electricity would become unaffordable for a majority of Kenyans.

“Section 223 of the Energy Act 2019 prohibits any public entity from charging levies on public energy infrastructure without regulatory approval,” the KPLC boss explained