This archive report was first published on 24 August 2020.
Kenya Power and Lighting Company is facing a significant debt recovery challenge, with outstanding bills amounting to Sh5 billion.
As part of a new strategy, the company has decided to engage debt collectors to help recover the debt from customers who have been disconnected from the grid.
According to internal documents, the Sh5 billion debt is owed by customers who cancelled their accounts on request and those whose accounts were terminated for defaulting.
Kenya Power requires debt collection services for an outstanding finalised debt of Sh5.2 billion, as stated in a tender notice.
Breakdown of the debt shows that Nairobi residents owe approximately Sh2 billion, while those at the Coast Region owe Sh845.7 million.
North Eastern Kenya customers owe a total of Sh620.8 million, with customers in the Western Kenya owing Sh386.9 million and those in South Nyanza owing Sh343.07 million.
With the recent crisis, more than half a million customers had failed to pay electricity bills in the three months to June, pushing new defaults by Sh3.9 billion.
The debt collectors will attempt to lower the debt and help Kenya Power recover from a profit slump.
Published on August 24, 2020.
