This archive report was first published on 24 August 2020.
Published on August 24, 2020, Kenya Power is facing a significant debt recovery challenge, with unpaid bills amounting to Sh. 20 billion.
The national power provider has announced plans to hire debt collectors to recover an outstanding debt of Sh. 5.2 billion from customers who have defaulted on their payments.
According to a report, the debt is owed by customers who cancelled their accounts on request and those whose accounts were terminated for defaulting.
Kenya Power has revealed that the debt is distributed across various regions, with customers in Nairobi owing Sh. 2 billion, those at the Coast Region owing Sh. 845.7 million, and customers in North Eastern Kenya owing Sh. 620.8 million.
The company attributes the increase in defaults to the COVID-19 pandemic, which led to a decline in power consumption and an increase in financing costs.
Kenya Power is also expecting a dip in full-year profit due to the pandemic's impact on its business operations.
