Kenya Power holding Sh1.1bn for unconnected customers
Kenya Power managing director Ben Chumo speaks at a past press conference. FILE
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The firm's managing director Ben Chumo told Parliament Thursday that the money collected from 27,000 people was being held pending release of the Sh2.7 billion subsidy that the government promised for the job.
Dr Chumo said Kenya Power plans to spend Sh532 million to connect 8,000 single phase applicants.
Electricity distributor Kenya Power is holding Sh1.1 billion belonging to Kenyans who applied for electricity since January but have not been connected.
Ben Chumo, the managing director of the utility firm, told Parliament Thursday that the money collected from 27,000 people was being held pending release of the Sh2.7 billion subsidy that the government promised for the job.
The government has directed Kenya Power to connect those applying for single phase and three phase electricity connections within a radius of 600 metres from transformers at Sh35,000 and Sh45,000 respectively.
The actual cost of single phase connections stands at Sh135,000 while three phase connections require Sh350,000 – meaning state subsidies for the two stand at Sh100,000 and Sh305,000 respectively.
“Kenya Power and the government meet the cost difference through subsidies. A study is underway to determine the prevailing cost of connectivity and once the study is out we will be able to determine the new charges,” Dr Chumo told the National Assembly’s Energy Committee sitting chaired by Jackson Kiptanui, the vice-chairman.
Dr Chumo said Kenya Power plans to spend Sh532 million to connect 8,000 single phase applicants.
“We have identified 8,000 single phase applicants on whom we intend to pre-invest up to Sh532 million. The rest (19,000) will be discussed when the Sh2.7 billion subsidy comes in,” he said.
Kenya Power further told the MPs that it had no intention of returning the money to the applicants prompting MPs to demand an explanation of how the company deals with interest accruing on the deposits.
The 27,000 customers would get electricity in less than a month if the government releases Sh2.7 billion to subsidise the connections, Dr Chumo said.
“We have no intention to refund these customers any money. If the subsidy came yesterday, it would take a month to clear the pending applications,” he said.
Dr Chumo also denied claims by Njuki Muthomi, the Chuka/Igambang’ombe MP, Junet Mohammed (Suna East) and John Munuve (Mwingi North) that Kenya Power had been holding customer’s money for more than 10 years without connecting them to the power grid.
Kenya Power further denied claims that it has been holding applicants’ money for 10 years without connecting them to electricity.
“What we have is for customers who have made payments from January to date,” Dr Chumo said.
He, however, admitted that although there may be individuals who made payments two to three years ago but have not been connected.
He cited way-leave challenges as part of the many reasons there has been delay in connecting some customers.
“Way-leave rights challenges at times arise and that would delay the provision of service to the customers. We have to negotiate with land owners to have electricity cut through their farms to connect the applicant on the other end of the non-applicant’s land,” he said, adding that the problem was rampant in urban areas.
Kenya Power is also undertaking studies to cut the cost of conductors and poles for single phase consumers.
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