This archive report was first published on 12 July 2021.
Kenya Power workers during live-line maintenance. FILE PHOTO | NMG
Kenya Power is facing a cash flow crisis that has led to the auction of its transformers by the Kenya Revenue Authority.
The auction is linked to delays by Kenya Power in clearing taxes for the import of the transformers and storage fees, which the taxman says must be cleared within 30 days.
According to the Kenya Gazette notice, the auction is set to take place on August 12, 2021, if the goods are not cleared within the stipulated time.
The move comes as the country is experiencing regular power failures due to insufficient electricity generation capacity and a dilapidated transmission network.
Kenya Power needs to spend billions of shillings to upgrade electricity lines and transformers in the coming years to curb outages and keep up with the growing demand.
The utility firm has in the last seven years increased its network by 56,611 kilometres to 84,681 kilometres while customer base jumped 3.3 times to 7.6 million.
It posted a pretax loss of Sh7.04 billion for its financial year to June 2020.
