Kenya Power Raises Alarm over Clients Solar Switch

Posted on : Monday, 8th February 2021

The raising shift to solar power systems by heavy-consuming industrialists searching reliable and cheaper supply has rattled electricity distributor Kenya Power amid thinning revenues.

The utility firm said some of its industrial customers who account for about 54.8 % of its sales revenues  are gradually shifting to own-generated solar power, dealing a further blow to its already dwindling finances.

"The company managed in a challenging environment over the financial year under review, where demand growth at 3.7 % remained below the projected level of 5 %. The dampened demand growth is further compounded with the increased risk of grid defection by the industrial sector as decentralized renewable energy options are becoming more available and cheaper," Kenya Power revealed in its latest annual report.

The company got some Sh63 billion from the industrial customers who bought 4,462 Gigawatt hours in the year to June 2019, representing 45 % of its total revenue.

The big shift to solar power by heavy consumers has pushed Kenya Power into difficulty in the wake of excess production of electricity.