No payout for suffering losses from power outage – Wandayi

Energy CS Opiyo Wndayi commissioning a rural electrification project at Olng'arua village in Kajiado East constituency /Handout

Energy CS Opiyo Wandayi has ruled out the possibility of Kenya Power compensating customers for economic losses resulting from power outages and other electricity disruptions.

Delivering a blow to traders and business owners affected by frequent blackouts, Wandayi said current legislation does not obligate the Kenya Power and Lighting Company to offer compensation for such losses.

“The compensation mechanism laid out in the Energy Act 2019 applies strictly to damages caused by electrical supply lines—not to consequential losses experienced due to power outages,” Wandayi said.

He was responding to a question by Kisumu Senator Tom Ojienda, who sought clarity on whether any policies or frameworks exist to compensate customers who suffer preventable service disruptions.

Appearing before the Senate Energy Committee chaired by Siaya Senator Oburu Odinga, Wandayi acknowledged the adverse economic impact of outages.

However, he reiterated that compensation is only applicable in cases where physical damage is caused by supply lines.

The committee pressed the CS on the frequent power outages plaguing the country, which they said are negatively impacting businesses.

Wandayi identified several major causes of the disruptions, including transient interruptions caused by brief interferences in the electric grid and sustained outages resulting from equipment failures.

He also cited planned maintenance outages and temporary load shedding, often implemented during peak hours due to generation shortfalls and network constraints.

Despite these challenges, Wandayi said the country’s installed generation capacity stands at 3,080 megawatts, against a peak demand of 2,316 megawatts.

He told the Senate that the national electricity network spans approximately 320,000km, with over 80 per cent comprising the distribution network, including both medium and low-voltage lines.

Senator Ojienda also sought information on KPLC’s preparedness during the rainy season, including existing preventative strategies, infrastructure audits, and disaster response protocols.

In response, Wandayi said Kenya Power is actively refurbishing its transmission and distribution network, undertaking preventive maintenance, and managing vegetation growth around power lines to enhance grid resilience.

“KPLC is continuously assessing and enhancing the capacity of lines and primary substations to meet growing demand,” he said.

He added that the Kenya Electricity Transmission Company is also working on new transmission projects to address power evacuation challenges.

Wandayi further revealed that KPLC aims to raise Sh200 billion in revenue through diversified sources over its 2023–2028 strategic plan.

These alternative streams include consultancy services in power system design and construction, maintenance of high-voltage equipment and networks and capacity-building programmes through the Institute of Energy Studies and Research.

Responding to Nandi Senator Samson Cherargei, Wandayi said Kenya Power is also earning revenue by leasing poles under the Government’s Digital Superhighway project and offering related maintenance services.

The CS added that the rollout of smart meters for homes and businesses is reducing manual billing interventions and helping cut down on outstanding debts among large users, SMEs and domestic consumers.

INSTANT ANALYSIS

KPLC has cited various reasons for the frequent power outages across the country. The company has attributed transformer failures to overload caused by unauthorised connections. The result is power blackouts. When communities tap into the power grid unlawfully or plug in too many high-power appliances, it pushes the transformer beyond its designed capacity. These makeshift setups not only create dangerous voltage imbalances but also force the equipment to work overtime — often leading to overheating and, ultimately, failure.