•Other Issues Include Infrastructure Control, and Revenue Rights
Bunge Towers, Nairobi| In Kenya’s devolved governance framework, electricity has emerged as a critical fault line—exposing the tension between national utility provider Kenya Power and Lighting Company (KPLC) and county governments.
What may appear on the surface as routine power outages is, in many instances, symptomatic of a deeper institutional conflict rooted in legacy debts, infrastructure control, and disputed revenue streams.
County governors across the nation are sounding the alarm over persistent power disconnections, which are increasingly paralyzing essential public services.
From hospitals and water supply systems to street lighting, key county functions are grinding to a halt—not necessarily due to technical failures, but due to unpaid electricity bills and unresolved jurisdictional disputes with KPLC.
Unresolved Legacy Debts and Disputed Bills
The origin of the standoff dates back to the pre-devolution era when counties inherited substantial electricity liabilities from the national government.
Despite assurances that the National Treasury would settle these legacy debts, several counties continue to receive bills for unclear and disputed amounts.
Nairobi County alone reportedly carries an unsettled electricity bill of over Kshs 3 billion.
Governors maintain that their objection is not to payment per se, but to the lack of clarity and verification.
Marsabit Governor Mohamud Ali, who chairs the Energy Committee at the Council of Governors (CoG), expressed frustration over the billing practices.
“We have not refused to pay the electricity bills owed to KPLC,” he said. “But we need to pay what is the correct bill.”
The CoG alleges that KPLC has billed counties for electricity connections not authorized or verified, resulting in inflated and often contested debts.
The absence of joint audits or collaborative verification processes has exacerbated mistrust, with counties accusing the utility company of coercion rather than engagement.
Infrastructure Control and Constitutional Mandates
Tensions have further escalated over KPLC’s continued installation of street lighting infrastructure without formal consent from county governments—an act that governors argue contravenes constitutional provisions on devolved functions.
Counties argue that as per the 2010 Constitution, energy planning and implementation, especially at the local level, require their oversight and approval.
The Senate, through its Committee on Energy, has now intervened in an attempt to mediate the standoff. During a recent hearing, Senator Dr. Oburu Odinga questioned the CoG’s delay in initiating audits.
“From your statement, you said that the KPLC electricity bills are not audited. Why don’t you form a joint committee for verification of the bills?” he posed.
Wayleave Disputes and Revenue Losses
Another bone of contention is the issue of wayleave payments—the compensation counties previously received for public land used in the installation of electricity and fiber optic lines.
With the enactment of the 2019 Energy Act, the mandate to collect these fees was reassigned to KPLC. Governors argue this shift has not only led to significant revenue losses but has also left unresolved back payments hanging in limbo.
Senator Dr. Boni Khalwale, a vocal member of the Energy Committee, emphasized the need for compromise.
“KPLC wants to be paid for electricity bills, and on the other hand, county governments want to be paid for wayleave land use. So what is the compromise?” he asked.
He lamented that both the CoG and KPLC have repeatedly failed to engage directly, forcing the Senate to step in as an intermediary.
Access to the Rural Electrification Fund and Legal Compliance
The crisis is further deepened by disputes over access to the Rural Electrification Programme (REP) Fund. Financed through a 5% levy on all electricity sales, the fund is intended to promote electricity expansion in underdeveloped areas.
Despite this mandate aligning with county responsibilities for local development, counties have no direct access to the fund—a situation they argue undermines devolution and equitable development.
Adding to county frustrations is the failure by national agencies, including KPLC, to remit contributions in lieu of rates (CILOR), as stipulated by the National Rating Act of 2024. These payments are meant to compensate counties for the use of public land by government agencies.
Recommendations and the Path Forward
In response to these overlapping disputes, the Council of Governors has presented a series of proposals to the Senate aimed at resolving the impasse:
- Transparency and Accountability: KPLC should disclose all revenues earned from telecom sub-leasing and remit all pending wayleave payments accrued before 2019.
- Legal Reforms: Amend the Energy Act to conform with the Constitution, ensuring that counties receive a fair share of energy-related revenues.
- Financial Autonomy: Enable counties to directly access the REP Fund and mandate compliance with CILOR by all national agencies.
- Structured Collaboration: Require formal intergovernmental agreements before any new electricity projects, especially street lighting, are initiated.
- Budgetary Safeguards: Ring-fence portions of county allocations for electricity payments to prevent service disruptions due to financial disputes.
A Call for Cooperation and Reform
Beneath the legal, fiscal, and technical disagreements lies a pressing human dimension: electricity powers critical services upon which millions of Kenyans depend daily.
From lighting maternity wards to running water treatment plants and keeping urban centers secure at night, electricity is not a luxury—it is a necessity.
As Kenya’s devolved system continues to evolve, this conflict highlights the urgent need for policy clarity, institutional cooperation, and a commitment to the public good.
Resolving the current deadlock will require both county and national actors to move beyond entrenched positions and engage in good faith dialogue.
If the current impasse remains unresolved, the consequences could be dire—not just for governance, but for the very citizens both levels of government are meant to serve. Yet with the right legislative reforms and political will, the lights in Kenya’s counties can shine brightly once more.
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