HomeRegional NewsEast AfricaKenya Power contracts IFC to support energy loss reduction

Kenya Power contracts IFC to support energy loss reduction

Kenya Power has launched an energy loss reduction initiative in partnership with the International Finance Corporation (IFC), the utility announced on Friday.

The aim of the initiative is to reduce technical and commercial losses in the east African utility’s network.

Energy loss reduction

Kenya Power managing director and CEO Dr Ken Tarus, said: “Reduction in energy losses is critical to the company as it translates to increased revenue hence improved profitability.”

Tarus added: “Kenya Power’s energy loss for the financial year ended June 2016 stood at 18.8%.

“Though it is an improvement from the 19.4% the previous financial year, we are yet to reach our target of single digit losses.”

“To help us achieve our single digit target, we have contracted the IFC’s Energy & Water Advisory to implement loss reduction initiatives.”

“These initiatives include support for both technical and commercial loss reduction, training, and management support,” Dr Tarus said.

Explaining the advisory service contract, the utility noted that it is a two-year assignment at a projected cost of Kshs 80 million ($77,632) with IFC and Kenya Power each financing 50% of the budget.

The Kenya Power financing component is linked to deliverables over the 2-year duration of the project.

Mitigating disruptions

In addition to mitigating energy loss, the utility is fighting against theft and vandalism toward its assets.

Last week, a Kibera court sentenced a man to 15 years in jail for transformer vandalism – alternatively he faces a fine of $58,415.

Stanley Kiiru Gitau to 15 years in jail while three other co-suspects were jailed for 10 years or to pay a $48,682 fine. Read more…

In a mid-year statement, Kenya Power emphasised that the utility will continue carrying out close surveillance on the network across the country to curb vandalism and other vices that negatively impact on the power distribution system. Read more…

The utility is working with the police, local administration and locals to carry out this exercise.

The public has been cautioned that anyone found culpable will be arrested and charged in court.

Apart from the immediate loss of supply to customers, vandalism negatively affects the Company’s revenue and leads to an unnecessary capital cost for replacing the destroyed equipment.


Featured image: Stock

Ashley Theron
Ashley Theron-Ord is based in Cape Town, South Africa at Clarion Events-Africa. She is the Senior Content Producer across media brands including ESI Africa, Smart Energy International, Power Engineering International and Mining Review Africa.