- The Council of Kenyan Governors is planning to challenge a law that exempts the Kenya Power Company from paying billions of shillings in wayleave fees.
- This legal battle follows a recent dispute between Nairobi County and Kenya Power, which escalated when city officials dumped garbage at the utility’s headquarters in protest.
The Council of Kenyan Governors is planning to challenge a law that exempts the Kenya Power Company from paying billions of shillings in wayleave fees. The county bosses argue that the power utility must compensate counties for using public land for its infrastructure.
Speaking before the Senate Energy Committee, Nairobi Governor Johnson Sakaja stated that all 47 governors have agreed to take legal action against the power utility company.
He accused the company of selectively enforcing payments, pointing out that while KPLC demands Sh1.5 billion from Nairobi County in unpaid electricity bills, it owes the county Sh4.7 billion in wayleave charges.
“In Nairobi, KPLC expects us to pay for electricity, yet they owe us far more in wayleave fees. This double standard is unacceptable,” Sakaja said.
Senators, led by Nairobi Senator Edwin Sifuna, support the governors’ stance and are considering amending the Energy Act 2019. The proposed changes would make it mandatory for Kenya Power to pay for wayleave fees, ensuring counties receive much-needed revenue.
“The Senate has resolved to amend this law. While we expect counties to manage public funds well, we cannot allow the national government to deny them rightful revenue,” said Sifuna.
This legal battle follows a recent dispute between Nairobi County and Kenya Power, which escalated when city officials dumped garbage at the utility’s headquarters in protest.
Section 223 of the Energy Act currently prohibits public bodies from charging levies on energy infrastructure without written approval from the Cabinet Secretary. However, governors argue that this provision should not be applied retroactively.
Sakaja pointed out that KPLC benefits commercially from using wayleaves, including earning revenue from internet service providers laying fibre optic cables.
“Kenya Power recently signed a Sh400 million deal with Safaricom. That money should go to counties, not just KPLC,” he said.
KPLC has warned that paying for wayleaves would increase national electricity costs by 30 per cent, adding Sh63.8 billion annually to consumer bills. Managing Director Joseph Siror noted that while the stronger shilling has helped reduce power costs, introducing wayleave fees could reverse these gains. Sakaja dismissed these claims, calling them selfish and insincere, arguing that Kenya Power is a business co-owned by the government and private investors.