Kenya Power, City Hall in standoff over Sh4.8 billion unpaid wayleave fees

Nairobi City County Secretary Godfrey Akumali. He dismissed claims that City Hall owes Kenya Power Sh3 billion and insisted that the power company must clear its debt. (Photo: Maureen Kinyanjui)

By Maureen Kinyanjui
Monday, February 24, 2025

The dispute dates back to 2007 when Kenya Power challenged City Hall’s authority to impose wayleave fees.

The Nairobi City County Government is demanding Sh4.8 billion from Kenya Power (KPLC) for unpaid wayleave fees, escalating a dispute that has dragged on for years.

County officials accuse Kenya Power of profiting from public infrastructure while refusing to settle its obligations.

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At a press briefing at City Hall on Monday, County Secretary Godfrey Akumali dismissed claims that City Hall owes Kenya Power Sh3 billion and insisted that the power company must clear its debt.

“Let it be very clear, KPLC owes us Sh4.8 billion. They are making profits and announcing them publicly, yet they can’t pay their dues,” Akumali said.

Letters demanding payment, sent in 2017, 2019, and 2020, have reportedly gone unanswered.

The latest demand, issued on December 6, 2024, puts the outstanding amount at Sh4.83 billion. City Hall also claims Kenya Power owes Sh17 million in land rates for 2025, worsening tensions between the two entities.

Nairobi County officials argue that Kenya Power is generating revenue by leasing its power poles and transmission lines to internet service providers (ISPs) without paying wayleave fees.

Finance CEC Charles Kerich criticied KPLC for monetising public assets while neglecting its financial obligations.

“KPLC now hosts optic cables and internet services. Those green and red cables on their poles – that’s internet. They are making money, yet they refuse to pay their debt. How are we supposed to pay ours to?” Kerich asked.

To pressure KPLC into settling the arrears, county officials stormed Stima Plaza, disconnected the company’s sewerage system, and dumped waste at its premises.

They vowed not to clear the waste until KPLC agrees to a payment plan.

“Let them not play the victim. We’ve been without power for days because they disconnected us, yet we always pay and resolve issues. But when they owe billions, they refuse to pay or even acknowledge the debt. Let them pay, and we will reconnect their sewer and clean up,” Akumali stated.

The dispute dates back to 2007 when Kenya Power challenged City Hall’s authority to impose wayleave fees.

The High Court dismissed KPLC’s petition, leading the company to seek relief from the Court of Appeal. However, no formal appeal has been filed, effectively stalling payments.

Investigations show that as of January 2025, several ISPs, including Safaricom, Jamii Telecommunications, Wananchi Group, and MTN Business (K) Limited, have leased infrastructure from KPLC, generating significant revenue for the power firm.

Nairobi County argues that while KPLC profits from these leases, it contributes nothing for using county land, depriving the city of rightful revenue.