Kenya Power continues to grapple with electricity losses surpassing the limit set by the Energy and Petroleum Regulatory Authority (EPRA), posing a significant challenge to the utility’s revenue streams.
The escalating system losses, attributed to illegal connections and inefficient transmission systems, remain a pressing concern for the company.
In December last year, Kenya Power recorded system losses of 25%, with the average over the last six months of 2023 standing at 23.2%. Despite the company’s objective to reduce losses to at least 20.93%, the figures have consistently exceeded this threshold.
EPRA permits Kenya Power to pass on 18.5% of these losses to consumers, translating to substantial financial implications annually. According to Kenya Power CEO Dr. Eng. Joseph Siror, transmission-specific losses range from 4.5 to 5%, with the remainder attributed to distribution and commercial factors.
These losses stem from technical inefficiencies and commercial theft, prompting Kenya Power to implement measures aimed at mitigating them. Stephen Vikiru, General Manager of Finance at Kenya Power, emphasized the need to address high loss-generating areas through targeted interventions to enhance system efficiency.
The challenge of electricity losses coincides with EPRA’s recent tariff increase of approximately 20%, aimed at bolstering Kenya Power’s revenue streams to support the overhaul of its aging infrastructure. Despite these efforts, addressing the root causes of losses remains critical to ensuring the sustainability of Kenya Power’s operations.
