Nairobi MCAs push for debt swap as City Hall, Kenya Power clash over Sh4.8bn debt

In a bid to end the long-standing standoff between Nairobi County Government and Kenya Power, the County Assembly is proposing a debt swap to resolve the issue.

The Nairobi County Assembly is suggesting that Kenya Power settle its outstanding Sh4.8 billion wayleave debt by offsetting it against the Sh1.5 billion electricity bill that Nairobi owes the power company.

Speaking on the matter, Majority Leader at the Nairobi County Assembly, Peter Imwatok, said that the County cannot continue providing services when such critical revenue streams are being ignored.

"This is not a negotiation but a matter of accountability. KPLC must pay what it owes just as other companies like Safaricom do," he said on Tuesday.

The dispute escalated when the Johnson Sakaja-led administration on Monday took drastic measures against Kenya Power, including dumping waste at its offices and disconnecting water and sewer services.

While these actions were seen as extreme, Imwatok defended the action, saying the County had no choice after Kenya Power's continued refusal to pay.

"While these actions were admittedly unorthodox, they were justifiable under the circumstances. The County County Government has the responsibility to protect its resources and ensure its operations are not hindered by entities that fail to honour their commitments,' he said.

Fair solution

The ODM MCA insist that the proposed debt swap is a fair solution.

"We recognise the Sh1.5 billion City Hall owes Kenya Power, but that should not be used as an excuse to evade the Sh4.8 billion they owe us," Imwatok stated.

Nairobi Senator Edwin Sifuna also weighed in, revealing that the National Government had already agreed to take over payment of streetlight electricity bills, making the entire dispute avoidable.

"I sat in a meeting with CS Wandayi a few weeks ago, and he assured me that his ministry had agreed to take up payment of streetlight bills because it was a security function. All this drama is totally unnecessary," Sifuna said.

He further criticised the National Government for failing to meet its financial obligations to the county.

"These National Government institutions refuse to pay their fair share of dues, including over Sh100 billion in unpaid rates owed to Nairobi alone! There is absolutely no commitment from the National Government to support devolution," Sifuna added.

Nairobi City Council workers dump garbage and clamp Kenya Power vehicles outside Stima Plaza in protest after power was cut off at their offices over pending bills. pic.twitter.com/F1gjs1RfTg

— The Eastleigh Voice (@Eastleighvoice) February 24, 2025

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However, not all MCAs support the County's approach.

Kileleshwa MCA Robert Alai condemned the actions taken against Kenya Power, calling them an "abuse of power" and likening them to "institutional terrorism."

"These actions set a dangerous precedent. What if Kenya Power decided to crash the national power grid over a dispute? Institutions must act with responsibility and follow legal processes," Alai said.

As a result, he has called for intervention from the President and the Ethics and Anti-Corruption Commission (EACC) to hold County officials accountable for what he termed "lawless behaviour."

Confusion surrounding the power connection at City Hall appears to be far from getting over.

City Hall on Monday declared war on the power utility firm until the way leave fees are paid in full.

Finance and Planning County Executive Committee member Charles Kerich said the county only owed KPLC about Sh 1.5 billion which he claimed both entities have sat and discussed how to pay.

" KPLC is not sincere at all. We have been having meetings with them almost every week and I can confirm that we even drafted a way that we will clear these bills. Last week we paid about Sh112 million to them. It is surprising that they have the audacity to come and cut power off at City Hall. They have tried us, let's see who will blink first, " he said.

There was drama on Monday as KPLC staff found themselves stranded after City Hall staff dumped garbage at the entrance of their office in Stima Plaza, Nairobi.

The county staff arrived in the morning with garbage trucks, blocking all entry and exit points. They then unloaded heaps of garbage, cut off the water supply, sealed sewer lines, and clamped and towed away KPLC vehicles parked outside Stima Plaza.

Unpaid parking fees

In a press statement issued at Stima Plaza, KPLC's management confirmed that several company-owned vehicles had been clamped by county government officers over claims of unpaid parking fees.

KPLC explained that the standoff began after the company decided to disconnect power at several Nairobi County offices due to an outstanding electricity bill of Sh3.1 billion. The power distributor stated that despite supplying electricity to the county, payments had been significantly delayed, prompting them to take action by cutting off the power supply.

In retaliation, City Hall cut water supply to major offices around Nairobi and blocked sewers for Kenya Power.

KPLC's General Manager for Commercial Services and Sales, Rosemary Oduor, spoke to the media, revealing that the dispute dates back two years when KPLC issued bills to the county, but payments were never made.

"This morning, we had our work going on, then all of a sudden, we realised that there were County Government trucks with garbage. One of them came and dropped the garbage right in front of our offices at Stima Plaza. Several of them are still on standby around the building," Oduor stated.

"We have had a long-standing issue with Nairobi County regarding payment of their bills. They have continued over time to raise issues with their bills, and we have had discussions over the last two years on how this could be solved, and they committed that they would start paying," she added.

On the other hand, City Hall claims that it has held meetings with KPLC since June 2021 to try and resolve the wayleave fees issue, but KPLC has chosen to play hardball.

"In addition to not settling their wayleave bills, KPLC has proceeded to take other steps to deny the county government its rightful revenue by leasing its poles to internet service providers to carry fibre optic cables attached to its transmission lines," said Acting County Secretary Geoffrey Akumali.

The two entities have been at odds over debt arrears since 2014. The first major disruption occurred in January 2015 when City Hall was plunged into darkness for three days.

In 2016, KPLC threatened to cut off power to City Hall Annex, Mama Lucy Hospital, Pumwani, and streetlights. However, City Hall went to court and obtained an order barring the utility from cutting the power.

The county government has also questioned the accuracy of the power bills, arguing that much of the power is consumed by streetlights, which serve a security function.