Kenya Power is set to deploy debt collectors to counties that have defaulted on their power bills, with Nairobi, Mombasa, and Kiambu counties topping the list of nonpayers.
The utility has issued a tender for debt collectors to help it recover Sh3.53 billion that the devolved units have failed to pay for their electricity consumption.
âKPLC is calling for the provision of debt collection services that entail the assignment of a specific debt to a Private Debt Collector(PDC). The total debt is Sh3,536,500,000,â said Kenya Power in the tender document.
âPayment of the debt will be done directly to KPLC by the debtor and the Private debt collector paid commission for such collection.â
Nairobi owes the utility a total of Sh1.35 billion, which is 38.2 percent of the total debt, making it by far the largest defaulter among all 47 counties.
The capital is followed by Mombasa, which owes Sh296 million, and Kiambu, which has failed to pay Sh217 million.
Other top defaulters are Elgeyo Marakwet (Sh190 million), Machakos (Sh180 million), Kisumu (Sh144 million), and Kilifi (Sh131 million).
Meanwhile, counties that have the smallest share of defaults are Lamu and Tana River which have both failed to pay Sh1 million, Mandera (Sh1.2 million), Tharaka Nithi (Sh1.5 million), and Turkana (Sh1.8 million).
The debt has been accumulating for years which has worried the State-owned utility, forcing the national government to step in to try to force the hand of the counties to settle the arrears.
âConsequently, the National Treasury has issued a circular to county governments reminding them to settle debts owed to KPLC and ensure that these pending bills are included in their budgets and repayment plans in line with the Public Finance Management Act, 2012 and in order to avoid disrupting operations and other financial obligations of the company,â Treasury Cabinet Secretary Njuguna Ndungâu said last year.
This is however not the first time that Kenya Power is resorting to private debt collectors.
The power firm has previously hired debt collectors, who are usually paid a portion of the amount of money that they manage to recover from the defaulters.
Kenya Power has been facing an increasing problem of defaults, especially from postpaid customers who fail to pay when the due date comes due.
