Economy
Kenya Power eyes exemptions in critical kits buys
Thursday October 26 2023
Kenya Power Board chairperson Brenda Masinde.
Kenya Power is pushing for exceptions in procurement of critical equipment in a bid to avoid purchase delays caused by bruising court fights, at a time thousands of customers have been forced to wait for connections for over two years.
Board chairperson, Brenda Masinde said the electricity distributor has already written to the Ministry of Energy for greenlight to use special dispensation in purchasing equipment such as meters and transformers.
The revelation comes at a time the firm has been forced to delay connecting thousands of customers amid court cases that have derailed procurement of meters.
Kenya Power, like other State firms is required to follow the Public Procurement and Asset Disposal Act, 2015 in purchasing all equipment, but it has been on many occassions challenged in court over breaches of the law, leading to delays in buying the kits.
“We are in discussions with the government about easing some of the procurement restrictions especially for critical equipment so that we are able to get them well in advance, for like say two years in advance,” Ms Masinde told Business Daily.
“It is all about buying the lead time because Kenyans need the service, nobody applies for a meter when they do not need it so we have to stay ahead of the curve.”
Kenya Power has since last year been embroiled in court battles with local manufacturers who had gone to a tribunal and later the High Court to block a Sh2 billion tender for the supply of single-phase, three-phase post-paid and prepaid meters.
The smart meters court cases came in a year when the Public Procurement Administrative Review Board halted a Sh1.5 billion tender for transformers amid protests from local manufacturers fretful of being locked out of the deal.
“People have taken us to court and this has affected how fast we get the critical equipment, people need meters but we are in court due to injunctions.”
The delays have significantly hurt Kenya Power’s efforts to grow customers at a time wealthy homes and firms are opting for alternative electricity sources such as solar and biomass.
The State-owned power distributor early this month revealed that it has 236,924 pending new connections, with a majority dating as long as two years.
Kenya Power recently acquired 320,000 meters through special dispensation that Ms Masinde says was granted by the head of Public Service, Felix Koskei.
But the push for exceptions in purchasing the critical equipment fuels fears of loopholes to favour some suppliers at the expense of others.
