In a move to bring electricity to Nairobi’s sprawling informal settlements, Kenya Power and Lighting Company (KPLC) has put out a call for partners to help distribute power in these long-neglected communities.
The state-owned utility company issued a Request for Expression of Interest seeking retailers to help construct, maintain and operate local electricity networks across nine slums, including the massive Kibera settlement. This new community-based model represents a bold shift for Kenya Power, which currently controls the national grid.
The company hopes that by working with local providers, it can finally connect thousands of households in informal areas that have never had reliable access to electricity. However, the plan is not without risks, as Kenya Power’s previous public-private partnerships have been plagued by scandals.
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This move was hinted last October when current Cabinet Secretary for Energy Davis Chirchir then a nominee urged Kenya power to think “outside the box” during his Senate confirmation.
“We really need to think out of the box on how Kenya power trades, think about how Safaricom trades. They give you a zone to manage and you can buy credit in bulk and prepay, for those of us who work for Safaricom they aren’t owed any money. You prepay airtime and distribute. Collect the money prepay and collect more,” he further elaborated.
“There is no reason why Kenya power cannot adopt those kinds of frameworks of a region being given to a business person,” said the CS.
In the request statement, KPLC is looking for partners with the relevant knowledge and experience to trial the new model. Possible applicants are required to have a prior knowledge of medium and low voltage power distribution networks. The new agents will construct and maintain the medium and low voltage network, install sub-meters and collect revenue on Kenya power’s behalf.
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The new model represents an opportunity for Kenya power to access new customers and grow it revenue base, however, Kenyans will be hoping what happens is not a repeat of the power purchase scandal that plagued the electricity supplier’s previous public-private partnership.
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