This archive report was first published on 5 July 2021.
Kenya Power's Rural Conundrum ¶
Monday, July 5, 2021
Kenya Power's efforts to increase revenues have been hindered by low electricity consumption in rural areas, where households spend an average of Sh3.34 daily.
According to Kenya Power shareholder disclosures, the average monthly electricity consumption of rural households connected to the national grid is six kilowatt hours (kWh), valued at Sh100.45 or Sh3.34 a day.
Most of these households use electricity for charging phones and controlled lighting, indicating low living standards in rural areas and urban slums.
Kenya Power has attributed the low revenues to the low consumption levels of rural customers, who have failed to lift the utility firm's sales.
The company is now shifting focus to connecting 'quality customers' like schools, hospitals, and pubs, and has intensified sales growth through increased connectivity targeting premium customers.
Kenya Power's customer base has increased from about 2.03 million in 2012 to 7.57 million in the year to last June, but most of these customers are in remote areas with low consumption levels.
The government subsidy boosted electrification and removed darkness from many villages, but the power distributor has struggled to recover connection fees, with some homes switching to solar or reverting to kerosene lamps to avoid paying the fees.
