Standoff as KPLC, Nairobi County clash over Ksh.4.8B in unpaid fees

The standoff also involves unpaid electricity bills owed by the county to KPLC, further complicating the already tense relationship between the two entities.

According to Nairobi County Secretary Godfrey Akumali, KPLC owes the county approximately Ksh. 4.8 billion in annual wayleave fees. 

These fees are applicable to all service providers who use public land and infrastructure for their operations and are required by Legal Notice No. 4894 of 2001. 

The county secretary claims that KPLC has not paid the debt despite numerous requests for payment going back to 2002.

“The law is clear on wayleave charges, and KPLC is not exempt.''

They cannot continue ignoring their financial obligations while generating revenue from our infrastructure,” Akumali stated.

The conflict began in 2007 when KPLC petitioned the High Court to overturn the county's legal requirement to impose wayleave fees. 

Despite the petition's denial, KPLC pursued an appeal and was successful in getting the High Court's 2017 decision to be stayed.

However, according to the county, the company has not filed the actual appeal, leaving the matter in legal limbo and prolonging the stalemate.

County officials have accused KPLC of applying double standards, noting that while the utility company aggressively enforces payments from its customers, it has failed to honor its own financial obligations to the county. 

“The way they ask all of us to pay their bills, they should also pay for the services we provide them,” Akumali added. 

The dispute has expanded beyond wayleave fees, with NCCG raising concerns over KPLC’s leasing of its utility poles to internet service providers (ISPs). 

The county cited investigations that reveal KPLC has lease agreements in place for fiber-optic installations on the company's transmission lines with major telecom companies, including Liquid Intelligent Technologies, Telkom Kenya, and Safaricom. 

According to the county, KPLC has been charging ISPs for access to infrastructure located on county property while neglecting to pay the necessary wayleave fees. 

“This is a clear case of double standards. KPLC cannot charge third parties for access to county land while refusing to pay its dues,” said a senior county official who requested anonymity.

The protracted standoff has prompted Nairobi County officials to threaten to take action to force KPLC to comply. 

“We need funds to offer services. We will remove garbage once KPLC pays us what they owe us,” Akumali stated. 

Meanwhile, the county has acknowledged its own pending electricity bill to KPLC, which stands at approximately Ksh. 113 million. 

About 85% of this bill, according to county officials, is for public lighting, and payments are being made gradually. They maintain, however, that the outstanding wayleave fees—which greatly outweigh the sum owed to KPLC—remain the main problem.

Further complicating the dispute, KPLC also owes the county Ksh. 17 million in unpaid land rates for its infrastructure within Nairobi. 

“As much as KPLC is demanding its dues, they must also recognize that they have financial obligations to the county. We have been patient, but we will not hesitate to take necessary measures to recover the debt,” Akumali said.