Kenya Power to add more pre-paid meters

Last Updated 14 years ago by Kenya Engineer

The country’s power distributor, Kenya Power intends to spend Sh5 billion in increasing the number of pre-paid meters installed. It plans to increase the number by 520,000 to 694,820 over the next nine months to cut the risk of consumer default.

The firm has installed 174,820 meters since the year 2009 marking 8.2 per cent of the total 2.1 consumers. The deepening of the billing system is expected to boost Kenya Power’s cash flow as well as lower the cost of needed meter readers.

The roll-out of more prepaid meters is part of the company’s medium term plan to cover all consumers under the new system by the next year. It will see the pre-paid meters deployed outside major urban zones of Nairobi, Mombasa, Kisumu and Nakuru.

This the company says will eliminate the risk of non-payment of electricity charges as the consumers will pay upfront for their power unlike the current system where they pay after one month consumption. The unpaid bills are said to have risen to Sh7.4 billion from Sh5.2 billion in the previous year meaning that the additional debt was equivalent to 54 per cent of its Sh4.2 billion net profit. It will also help consumers manage their bills as well as reduce the commercial losses and congestion in the banking halls.

The Sh5 billion the company says will be raised from reserves and fresh borrowings.