Kenya Power starts process of buying 700,000 meters
A Kenya Power employee inspects a meter box at an apartment building in Tassia Estate, Nairobi in February 2020.
Kenya Power is seeking to buy 736,697 electricity meters to address a biting shortage that has frustrated thousands of customers who are seeking new meters, and to replace faulty or stolen ones.
Tender documents seen by the Nation show the firm will purchase the meters – a vast majority of which are prepaid – over the next two years from local manufacturers only.
This comes at a time when many customers are finding it hard to buy meters from the utility firm, while prices of the few available ones have also shot up tremendously.
“A prepaid meter is currently being sold at Sh8,000 compared to Sh2,000 last year,” a customer who was given a quotation for meters by the utility recently told the Nation.
Kenya Power has in recent months struggled to keep up with the demand for meters as it rapidly connects more customers to the grid, forcing new customers to wait long to get the gadgets.
The company in December crossed the nine million customer mark in its race to achieve universal electricity coverage within the next decade.
Currently, Kenya Power connects at least 500,000 new customers to the grid annually, indicating that demand for meters will continue to rise in the coming years, which could worsen the shortage unless the firm buys enough meters.
The tender for the new meters is limited to local manufacturers, indicating that the firm is unwilling to risk the procurement battles that have in recent years derailed its planned purchase of the gadgets.
The company recently battled in court with local suppliers who protested the tough terms the firm introduced in its bid to procure meters worth Sh2 billion, delaying the process for months.
Four local firms – Smart Meters Technology Ltd, Shenzhen Star Instrument Company Ltd, Magnate Ventures Ltd and Inhemeter Africa Company Ltd – took Kenya Power to court, arguing that it had placed limits on the tender that favoured foreign companies.
They said the requirement for a successful bidder to have a minimum of 15 years of technical specifications experience in the manufacture of energy meters was unlawful and biased.
The fresh tender also includes the purchase of smart meters that the company is betting on to increase sales.
The utility says smart meters have increased accuracy in meter readings, enabled prompt billing and reduced energy pilferage.
“An analysis of sales over a period of four months on 62,807 installed smart meters showed an increase in sales by 8 per cent,” said the company in its latest annual report.
