Kenya Power disputes Sh4.1 billion debt demand by City Hall as ugly standoff escalates

Kenya Power and Lightening Company (KPLC) has refuted claims of owing Nairobi City County Government Ksh 4.1 billion wayleave charges.

It cited Section 223 of the Energy Act, which prohibits public bodies from charging levies on energy infrastructure without the consent of the Energy Cabinet Secretary.

“On the claim that we owe the county money, arising from wayleave charges, we wish to state that section 223 of the Energy Act 2019 prohibits Public bodies from charging levies on infrastructure without the authorization of the Cabinet Secretary,” KPLC said in their statement.

The electricity distributor has accused City Hall of failing to pay their outstanding power bills of Sh3.1 billion.

In what seems to be an escalation of conflict between the power supplier and the Johnaon Sakaja-led administration, the company criticised the county government for clamping it vehicles, dumping garbage at the Stima Plaza entrance, blocking the sewerage system and cutting its water supply.

The company termed the actions as unethical, unprofessional, and unlawful.

It accused the county government of failing to honour the repayment structure they agreed on in December last year.

KPLC noted that while Nairobi County was expected to pay Sh60 million for old debts and Sh50 million for current bills each month, it only paid Sh36 million in January 2025—far less than the Sh330 million required to cover three months’ worth of bills.

They stated that after exhausting the diplomatic options it was then that they were forced to switch off electricity to several county facilities on February 14, a move that was met with swift retaliation.

County officials cut off water supply to KPLC’s offices and substations, even though the company had no outstanding water bills.

However, City Hall, through County Secretary Godfrey Akumali, accused KPLC of violating Legal Notice No. 4894 of 2001, which requires all service providers to pay wayleave fees.

Akumali claimed that KPLC has ignored numerous requests for payment dating back to 2002, despite aggressively enforcing payments from its customers.

The county government has also expressed concern about KPLC leasing its utility poles to internet service providers including Liquid Intelligent Technologies, Telkom Kenya, and Safaricom.

County officials argue that KPLC has profited from these transactions while refusing to pay the required wayleave fees, citing a clear case of double standards.

In response to the impasse, county officials staged a protest by dumping truckloads of garbage at KPLC’s headquarters, blocking access to the building, and clamping both business and personal vehicles since yesterday as they threatened to withhold essential services such as garbage collection until KPLC clears its outstanding debt.

KPLC workers have been forced to work from home until the matter is resolved as the work environment is not suitable for human beings.

Yesterday, the Kenya Power Pension Fund, the legal owner of Stima Plaza, called on KPLC and Nairobi county government to amicably sort out their issues and restore services at the complex as their tenants including Cooperative Bank and Health Point Services, among others, have been severely affected by the actions by city county government.

“Kenya Power Pension Fund is the legal owner of Stima Plaza located along Kolobot Road where KPLC, Cooperative Bank, and Health Point Services among other tenants reside. Nairobi Water and Sewerage Company disconnected water and sewerage services at the complex without a clear explanation despite there being no outstanding arrears on rates, water, or sewerage. They blocked entrances to the complex and dumped garbage outside,” it said in their statement.

“We condemn the acts by County Officials to disrupt business operations to our tenants as we assure that we are working with the relevant authorities to resolve the matter even as we call the parties involved to amicably solve the matter and restore normalcy at Stima Plaza,” it added.