A couple of years ago, when Oliver Shikuku moved into a new house in Umoja, Nairobi, he was slapped with an electricity bill of Sh32,000.
He knew something was wrong and embarked on a series of visits to the power offices in Nairobi CBD to have the bill reviewed.
Shikuku’s experience reflects one of the challenges facing electricity consumers and utilities, inaccurate readings, billing disputes and limited access to real-time consumption information.
It is a problem that Kenyan technology firm Smeta Smart Solutions is seeking to address through smart metering, which combines digital meters with software that allows utilities to monitor consumption remotely.
For Kevin Mutugi, who runs Smeta, the future of electricity metering is no longer simply about measuring how much power a customer consumes.
It is about collecting data in real time, detecting losses, improving billing and allowing utility companies to manage their networks remotely.
“We know our problems, we create solutions and curate them in a locally understandable dialect that our customers can relate with,” says Mutugi.
The firm currently imports more than 25,000 meters annually and expects the figure to reach 30,000 this year.
About 90 per cent of the hardware components are imported, while the software that runs the system is developed entirely in-house.
Mutugi says the reliance on imported components remains a challenge as Kenya pushes for local manufacturing under the Buy Kenya, Build Kenya agenda.
Mutugi says locally manufactured meters are not necessarily cheaper than imported alternatives because many of the raw materials still have to be shipped overseas for processing.
“A lot of policy shifting needs to be done in order for us to reap the full benefits of local manufacturing,” he says.
The firm says its system combines metering hardware with software that allows utilities and other customers to monitor consumption, identify anomalies and manage collections remotely.
The technology can also flag suspected meter tampering and provide information on when an incident occurred, how it happened and what was allegedly misappropriated.
Mutugi says this can help utilities tackle losses caused by electricity theft, inaccurate readings and inefficient collection systems.
The company has moved from traditional mechanical meters to digital devices equipped with sensors that remotely record and transmit consumption information.
According to the co-founder, the technology can achieve accuracy of up to 99 per cent, helping reduce billing disputes while giving utilities access to consumption data without relying on physical meter readings.
Despite government efforts to promote local manufacturing, Mutugi says more needs to be done to enable Kenyan technology companies to compete with international manufacturers.
He also wants the metering market to be decentralised, allowing smaller retailers and installers to serve customers faster.
“Today, a customer should be able to walk into a metering company with a requirement and be able to walk out with meters within minutes,” he says.
He argues that devolving some metering functions could improve service delivery while creating opportunities for smaller businesses.
Smeta says it has built a network of electrical contractors around its business. The company has 22 permanent employees and 379 agents working under contractual arrangements, giving it a direct and indirect workforce of about 400 people.
For Mutugi, local technology manufacturing can therefore create jobs beyond factories, including installation, maintenance, software development, customer support and distribution.
The company says it has begun expanding into the regional market after breaking ground in Tanzania, where it is gradually building traction.
The move comes as African power markets invest in digital infrastructure, renewable energy and smarter electricity grids.
For Smeta, the opportunity is to combine locally developed software with metering hardware to help utilities manage increasingly complex power systems.
But reducing dependence on imported hardware remains a challenge. Mutugi says the company’s experience competing against international manufacturers has shown the importance of understanding local markets.
