Kenya Power on Tuesday invited applications from interested bidders to provide debt collection services as the power distributor moves in to collect billions owed to it by different stakeholders.
Through a notice published on MyGov, Kenya Power announced that the tender will be opened on Friday, February 9 and closed on Thursday, February 29.
Interested bidders were directed to obtain the tender documents from the official Kenya Power website kplc.co.ke.
The power distributor has recently moved to recover billions owed to it by various parties. The Draft 2024 Budget Policy Statement published by the National Treasury in December 2023 shows that counties owe the parastatal the most money.
Treasury Cabinet Secretary signing a financing deal with African Export-Import Bank on Tuesday, May 2, 2023.
In the document, Treasury Cabinet Secretary Njuguna Ndung’u revealed that as of September 24, last year, counties owed Ksh3.5 billion to Kenya Power with the amount having accumulated for years.
Nairobi County accounted for a majority of the debt amounting to Ksh2.17 billion.
“The outstanding pending bills owed to Kenya Power & Lighting Company (KPLC) by County Governments as of September 24, 2023 amounts to Ksh 3,492,122,613.47,” read the statement in parts.
While releasing the document, Ndung’u called upon the counties to settle their dues and include the pending bills in their budgets and repayment plans in line with the Public Finance Management Act, 2012.
The CS reiterated that failure to repay the debts would disrupt the power company’s operations and hamper its capacity to deliver on its financial obligations.
Besides counties, government ministries, parastatals, departments and agencies also owe the utility firm huge debts running into billions, left unpaid for several years.
The firm also claims huge debts from regular citizens who over several years, also defaulted on paying debts running into billions.
In its annual report published in December 2023, Kenya Power wrote off Ksh2.29 billion in unpaid bills after losing hope of ever recovering the money further compounding the firm’s financial woes.
“The expected credit losses rose by Ksh 3.203 billion due to increased customer debt levels attributable to the tough economic conditions,” read part of the report.
Kenya Power made losses while attempting to recover the amount.
Away from debt recovery, Kenya Power through its tender notice invited applicants to provide several other services including the provision of firefighting appliances for Kenya Power workplaces for two years, the provision of conference and accommodation facilities, and the proposed construction of transformer repair sheds.
Additionally, the power company also called for bids to provide technical services and workshop tools and equipment, electrical materials for the Lesso 220/132kv substation and installing, testing and commissioning of the Riser Board and Low Voltage Distribution Board at three electricity houses.
KPLC workers repair a collapsed transmission tower in Nairobi on January 11, 2022.