Kenya Power’s unpaid electricity bills rise to Ksh.41.5 billion

Kenya Power is facing a growing burden of unpaid electricity bills, with outstanding payments from its postpaid customers rising to Ksh.41.5 billion.

Of this amount, nearly Ksh.8 billion is owed by the government, while other businesses and households account for the remaining Ksh.33.5 billion.

The mounting debts have forced the utility to increase its provisions for potentially unrecoverable bills to nearly Ksh.15 billion, at a time when previous attempts to disconnect defaulting public institutions have sparked disputes and court battles.

By the close of June this year, Kenya Power was owed Ksh.41.5 billion in unpaid electricity bills by its postpaid customers, nearly Ksh.2.5 billion more than a year earlier.

Government ministries and county governments accounted for Ksh.7.35 billion, while strategic state corporations owed a further Ksh.588 million.

This brings the outstanding electricity bills from public institutions to nearly Ksh.8 billion, with the remaining Ksh.33.56 billion spread across other postpaid customer accounts, including households and private businesses.

Kenya Power requires customers to settle their electricity bills within 21 days of billing. However, nearly half of the outstanding amount, Ksh.20.4 billion, had remained unpaid for more than three months.

The utility has consequently increased its provision for potentially irrecoverable electricity bills to Ksh.14.89 billion, reflecting the risk that some of these debts may never be recovered.

The problem is hardly new. In its 2025 audit, the Office of the Auditor General flagged Ksh.5.68 billion in unpaid electricity bills from county governments, noting that recovery efforts had yielded little success.

Attempts to enforce payment have previously sparked confrontations. In February 2025, Kenya Power disconnected several Nairobi County offices, leading to a confrontation that prompted the intervention of the Head of Public Service.

A similar standoff unfolded in Mombasa in March 2023, when the utility cut power to county offices over a Ksh.120 million debt.

Compounding the debt burden is a separate Ksh.35 billion owed by the government under the Rural Electrification Scheme.

The money covers losses incurred in supplying electricity to rural areas, where the cost of maintaining the network is higher than the revenue collected.

The mounting arrears come even as Kenya Power reports improved financial performance, having posted a net profit of Ksh.24.9 billion in the last financial year.