Kenya Power grapples with rising electricity losses
Kenya Power has long battled an ageing power grid, but financial constraints have prevented it from carrying out a much-needed overhaul.
Kenya Power’s electricity losses surged to 23.65 per cent in December 2024, up from 23.16 per cent in June, marking the highest level recorded in at least a year. This increase highlights the utility firm's ongoing struggle to curb system losses that are costing it millions in potential revenue.
System losses refer to the discrepancy between electricity purchased from producers and what is ultimately sold to customers. The company has emphasised that reducing these losses is crucial to maximising the gains from increased electricity sales.
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“The system losses as of December 2024 were 23.65 per cent. KPLC has targeted to reduce the losses further by the end of the financial year as aligned in the strategic plan,” Kenya Power stated in response to queries about the rising losses.
The firm attributed the challenge to heavy reliance on distribution lines for transmission, explaining that lower voltage levels contribute to higher system losses. Electricity theft, particularly in informal settlements, has also exacerbated the problem.
“There are also grid-level projects being implemented by Ketraco that target reducing transmission on the long 132 kilovolt (kV) lines. We are completing key projects for system reinforcement and load balancing to reduce technical losses in the short term,” the company added.
The high rate of system losses continues to hinder Kenya Power’s ability to drive sales and profits. The energy regulator caps recoverable losses at 18.5 per cent, meaning the firm cannot pass excess losses on to consumers.
System losses fall into two categories: technical and commercial. Technical losses stem from inefficiencies in the transmission and distribution network, while commercial losses result from illegal connections and meter tampering.
Kenya Power has long battled an ageing power grid, but financial constraints have prevented it from carrying out a much-needed overhaul.
Despite these challenges, Kenya Power’s electricity sales grew by five per cent to 5,506 Gigawatt-hours (GWh) in the half-year ending December 2024, up from 5,225 GWh in the same period a year earlier.
Analysts argue that the sales could have been even higher if system losses were effectively reduced.
The company, however, posted a remarkable net profit of Sh9.97 billion in the half-year ended December 2024—a more than 30-fold increase from the Sh319 million net profit recorded in the previous period.
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