Kenya Power spends Sh500m on customer care lounges

Electricity distributor Kenya Power will spend Sh500 million to build a premium customer care lounge at its Nairobi headquarters targeting corporate clients who contribute the bulk of its revenue.

Managing director Ben Chumo said on Monday the centres would serve medium and large customers in the city who consume more than 25kva.

“The idea is to reciprocate for their loyalty to our services given 500 of these clients contribute 60 per cent of our revenue,” he told the Business Daily.

The utility firm said it had hired a consultant to oversee the construction of the facility and would employ staff on a higher pay than the current customer care employees.

“Our premier office will give you personalised services for your power connection for any power requirements more than 25Kva,” said an advertisement published by Kenya Power last week.

The new facility will be based on 14th floor of Electricity House on Harambee Avenue in Nairobi.

Mr Chumo said the segmentation of customers was not meant to discriminate against low consumers of power but seeks to motivate both medium and large consumers as part of the firm’s new strategies to attract new members to the premium club.

Special lines

Under the new restructuring, Kenya Power is expected to introduce special lines and managers  assigned to big clients with some engineers stationed to factories in case of power outages or  related technical problems at the customers’ premises.

“Most of these clients make bigger contribution to our expansion and we found it prudent to treat them in the same manner they treat us,’’ said Mr Chumo. The plan would be funded by internal cash. The project will be implemented in phases starting with Nairobi before moving to other towns, he said.

Kenya Power draws most of its income from manufacturing and agricultural companies.

Last month, the firm borrowed Sh940 million from United Bank of Africa to fund its expansion as well as upgrade its power infrastructure as it prepares to roll out the planned extra 5,000 megawatts by 2017.

The funds would also be spent on replacement of old power lines with higher transmission volumes as well as upgrade its existing substations, set up 37 new ones and install new equipment in the national grid.