Kenya Power Managing Director Joseph Siror revealed that the company earns only Sh2 or less in profit for every Sh100 customers pay for electricity. In an interview with Citizen TV, Siror explained that of the Sh100, approximately Sh20 goes to Kenya Power to cover the utility firm’s operational expenses, while the majority of the money, about 65%, goes towards electricity generation.
“For every Sh100 that you pay in the bill, 65 per cent goes to generation. What only possibly comes to Kenya Power is Sh20. Of the amount, it might be 10 per cent of that is the profit that Kenya Power makes. It could sometimes be even lower,” Siror stated.
He mentioned that although the profit might seem small, when invested wisely, it could generate significant returns over time. Siror emphasized that increasing the number of connections across the country is essential for Kenya Power to boost its profitability.
Siror also addressed the discrepancies in the costs of electricity installation services, noting that several factors influence these variations. He highlighted that while Kenya Power operates commercially, government programs such as the Last Mile scheme play a significant role in providing power to underserved areas. These initiatives often do not account for the costs incurred in installing transformers, which are covered by Kenya Power’s resources.
“Kenya Power operates as a commercial entity but there are those other programmes which the government does under the recognition of the importance of power and they normally come under the Last Mile scheme,” Siror explained. “There is no provision for the cost that one would incur in putting the transformer; it would have come directly from Kenya Power resources.”
