Kenya Power Turns to Debt Collectors to Deal with Stubborn Defaulters
The Kenya Power and Lighting Company (KPLC) has resolved to hire four debt collectors that will deal with stubborn defaulters.
The debt collectors will aid in recovering the company’s dues from businesses and households in four regions including Nairobi and Coast.
As reported by Business Daily, as of August 2020, defaulters owed the company KSh 5 billion and the figure is expected to have risen due to financial constraints occasioned by COVID-19.
Last week, the lighting company, which enjoys a monopoly in Kenya, published a tender inviting debt collecting firms to apply for the deal that will run for two years.
The utility added that the debt ranges from six months to two years with domestic consumers being the biggest defaulters holding about 60% of the total amount.
Recover KSh 2 billion
As previously reported, the loss-making company said it would turn to community-based organisations (CBOs) to address illegal power connections in slum areas.
So far, the lighting company has partnered with several CBOs within Mathare, Mukuru and Kibera in a new move that would help recover KSh 2 billion lost to illegal power consumption.
Speaking on Tuesday, May 11, Managing Director Bernard Ngugi expressed confidence the partnerships would see the company improve uninterrupted service delivery to city dwellers.
Under the partnerships, Kenya Power will continue to carry out network maintenance and ensure that all customers in informal settlements are properly metered.
Reduced power bills
About a month ago, the lighting company announced a raft of measures that would see cost per electricity unit reduced.
Ngugi said the company was seeking to lower fixed charges in contracts signed with electricity-generating companies such as KenGen and pass the benefits to its customers.
In the plans, the public liability company wants to cut the costs spent on generators that have been used for the thermal production of electricity.
Once KPLC completes negotiations with electricity producers such as Gulf Power, Iberafrica, Tsavo Power, OrPower, Lake Turkana Wind and Thika Power, it would review prices downwards.