In a move that’s expected to strengthen its disconnections team in preparation for a coming intense operation intended to scour the lengths and depths of the entire country in search of customers who are yet to pay their monthly arrears, the Kenya Power has now outsourced the services of four debt-collecting services. Worth noting is that the two counties that are expected to feel the brunt of the operation are Nairobi and Mombasa. Ironically, this is happening in the backdrop of the president having received a report that intends to reduce electricity cost yesterday.
This comes in the wake of constant protests from the power distributor that the amount it’s owed in debts runs into the billions, and it has been affecting their operations.
Kenya Power this month published the tender inviting interested firms to apply for the deals that will last for two years.
“The company commissioned the services of four private debt collectors in the second half of the last financial year. The remaining four will be on-boarded as soon as tendering is concluded,” Kenya Power said.
Domestic consumers are the biggest defaulters of Kenya Power bills, holding over 60 percent of the dues owed to the utility.
The huge chunk of debt amongst households comes at a time power bills have been on the rise due to the increasing petroleum cost in the global market. This contradicts the commonly held belief that the biggest portion of debts owner to the utility company comes from other big companies, county governments, and even the central government.
This is the second time in as many years that Kenya Power is seeking debt collectors to recover dues that were estimated at Sh5 billion as at August last year.
The debt collectors will help recover dues from households and businesses in four regions including Nairobi and the Coast.
Kenya Power chairperson Vivienne Yeda during the utility’s annual general meeting this year said that sealing loopholes that facilitate financial hemorrhage and improving revenue collection is top on the company’s list.
Kenya Power’s total debts as at end of last June stood at Sh118.73 billion, made up of Sh65.96 billion commercial debt and Sh53.26 billion on-lent debt.
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