Kenya Power halts pre-paid meters in towns

By MACHARIA KAMAU

KENYA: Kenya Power is relooking its prepaid metering, with plans to relax the implmenetaion of the programme in urban areas.

Kenya Power newly appointed chief executive Ben Chumo said the shift in rolling out the programme is deliberately designed to focus on rural areas where it cost more to engage meter readers. He, however, noted that the power utility company expects to fully cover urban areas in the long-term.

The power retailer, however, said the new approach is still in line with plans to double the number of customers on the prepaid metering over the next two years. Currently, the firm has 400,000 customers on prepaid meters and plans to increase this to over 750,000. “Our offices are mostly in urbans areas and it is more costly to deploy meter readers to rural areas and outskirts of major towns,” he said.

Chumo, who was confirmed KP CEO, also cited strengthening of the power distribution system to reduce unplanned power outages as among key priority areas his office seeks to address.

Dr Chumo has been acting chief executive since June following a move by Joseph Njoroge to the ministry of Energy as principal secretary.

He said Kenya Power planned to invest Sh55 billion ($637 million) in upgrading power stations and transmission lines to increase the stability of its electricity distribution network that is prone to frequent unplanned power outages.

“We have revised the distribution master plan that entails strengthening the distribution network by having in place additional power lines and sub-stations. This will be in place in three years,” he said at a briefing in Nairobi yesterday.

“This is projected to cost US$637 million.” He added that the plan will also involve overhauling the current power distribution network that has been in place for years and is worn out, resulting in many unplanned power outages.

“The existing distribution network is fairly weak and requires a lot of strengthening. We have assigned a team to assess the network and establish what needs to be done… we will upgrade the lines as well as the poles and preferably use concrete poles that reduce our operation and maintenance cost,” said Chumo.

Chumo, a Kenya Power insider, was battling it out for the top job at the power retailer that attracted interest from key talent, including key private sector players.

According to sources, key contenders for the job included a renowned turnaround CEO and a tax expert that worked with the local office of a major global audit firm.

Other contenders

Kenya Power Chairman Eliazar Ochola, however, declined to name top contenders to the seat, citing confidentiality issues.

Chumo joined Kenya Power in 1986 as a Human Resources Officer and rose through the ranks to be in charge of human resource and administration.

Kenya Power is among other institutions in the power sub-sector that have been without substantive chief executives for some months now.

Electricity generation firm KenGen has been without a CEO since Eddy Njoroge retired end of June last year. Simon Ngure has been acting chief at KenGen.

The energy industry regulator— Energy Regulatory Commission — has also been without a substantive head since Kaburu Mwirichia retired. Dr Fredrick Nyang has been acting as director general.