- KenGen fines Kenya Power for delayed payments
- KPCL to pay KSh3.78 billion in fines
The Kenya Electricity Generating Company (KenGen) has fined Kenya Power Lighting Company (KPLC) KSh3.78 billion for delayed payments by the latter for electricity supplied in the last five financial years. KPLC has in the last five years flouted the 40-day window for payments for the electricity received from KenGen.
In its latest annual report, KenGen states that ”Interest income from Kenya Power relates to interest penalties charged to Kenya Power due to late payments of invoices. Interest on late payments accrues after 40 days,”
”This comes with the attendant risk of late or delayed payment for electricity sales which could have adverse effects on KenGen’s cash flow and revenue,” KenGen stated, describing the risks involved in power sales to KPLC.
The embattled state utility, KPLC, currently has liabilities that have exceeded its current assets by at least KSh67 billion at the end of June 2021, making it commercially insolvent. In September last year, the utility received a partial debt restructuring for KSh6.75 billion in a 12-year term loan with a repayment moratorium of 36 months.
Kenya Power currently owes KenGen KSh25.14 billion, with KenGen supplying 8,443 Gigawatt-hours (GWh) for the year in review.