Nairobi County, KPLC locked in Ksh.4.8 billion wayleave dispute

Speaking at a media briefing at City Hall, County Secretary Godfrey Akumali accused Kenya Power of refusing to settle the debt, while also denying claims that NCCG owes the power utility Ksh.3 billion.

“Let it be very clear—KPLC owes us Ksh.4.8 billion. They are making profits and announcing them publicly, yet they can’t pay their dues,” Akumali stated.

Several letters demanding payment—sent in 2017, 2019, and 2020—have reportedly gone unanswered. The county’s latest demand, issued on December 6, 2024, puts the outstanding amount at Ksh.4.83 billion.

Additionally, NCCG claims that Kenya Power owes Ksh.17 million in land rates for 2025, further straining relations between the two entities.

Commercializing Public Infrastructure

Nairobi County officials argue that beyond failing to settle its debts, Kenya Power is profiting from public infrastructure without compensating the county.

Finance CEC Charles Kerich highlighted that KPLC leases its power poles and transmission lines to internet service providers (ISPs), allowing them to run fiber-optic cables without paying wayleave fees to the county.

“KPLC now hosts optic cables and internet services. Those green and red cables on their poles? That’s internet. They are making money, yet they refuse to pay their debt. Who are we supposed to pay ours to?” Kerich said.

Retaliatory Measures

In an effort to pressure Kenya Power into settling the outstanding amount, Nairobi County officials stormed Stima Plaza, disconnected the company’s sewerage system, and dumped waste at its premises, stating that the waste would only be cleared once a payment agreement is reached.

“Let them not play the victim. We’ve been without power for days because they disconnect us, yet we always pay and resolve issues. But when they owe billions, they refuse to pay or even acknowledge the debt. Let them pay, and we will reconnect their sewer and clean up,” Akumali asserted.

Legal Battle and Pending Appeal

The dispute dates back to 2007, when Kenya Power challenged NCCG’s legal authority to impose wayleave fees.

The High Court dismissed Kenya Power's petition, prompting the company to seek relief from the Court of Appeal. However, no formal appeal has been filed, effectively stalling payments.

Investigations reveal that as of January 2025, several ISPs—including Safaricom, Jamii Telecommunications, Wananchi Group, and MTN Business (K) Limited—have leased infrastructure from Kenya Power, generating significant revenue for the power firm.

Nairobi County argues that while Kenya Power profits from these leases, it contributes nothing for using county land, depriving the city of rightful revenue.

The controversy deepened in June 2023, when Kenya Power announced plans to introduce Special Utility Poles for internet services. The county now contends that Kenya Power is expanding commercial operations while refusing to pay its legally mandated wayleave fees.

The standoff remains unresolved as both sides dig in on their positions.