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What Are Safaricom and Kenya Power Smart Meters, and Installation Roadmap

September 16, 2021
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What Are Safaricom and Kenya Power Smart Meters, and Installation Roadmap

Richard Okenye by Richard Okenye
September 16, 2021
in News
Reading Time: 2 mins read
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kenya power

Safaricom is diversifying and adding one more service in their portfolio, and it is in electrical connection to your household.

The telco provider, which has the majority share in the voice, data, and mobile money transfer market share is getting into a partnership with Kenya Power to supply electricity smart meters.

Kenya Power is set to earn revenues of up to KES 71 billion in eight years, but splitting 75 percent of it to Safaricom to enable a full transfer of the smart meters to Kenya Power.

The smart meters are devices developed to help Kenya Power reduce losses experienced in its current technology, fixing weaknesses from leakages to illegal connections.

The smart intelligent system will cost Safaricom KES 31 billion, which will be used in providing these smart meter distribution feeders, transformers, and consumers whose usage is over 200 kilowatts.

The system will be able to read meters remotely, track electricity uses, and even power outages.

These connections will happen in three phases, allowing Safaricom to build the infrastructure on which Kenya Power will take advantage to enable connection into the future. 

However, Executives at Kenya Power feel that the 25% share they are taking in this deal only favours Safaricom, and will likely be seeking a change in terms for better sharing once they have finalized the deal.

“Safaricom will have recouped its full cost in year four hence the need for a further discussion on the revenue uplift sharing proportion,” Martin Mutuku, Kenya Power’s General Manager for business strategy.

The system will be able to read meters remotely, track electricity uses, and even power outages.

The system losses experienced from old power grids, substations, households, and businesses combined with theft and vandalism to Kenya Power infrastructure have hurt the company.

The solution on the table now is to use the high-speed internet connection by Safaricom to enable smart management of how power is distributed and tracked.

The installation will begin from areas that border Mombasa Road in Nairobi, and as mentioned in the Kenya Power preliminary report, will be done to businesses and homes that consume more than 200Kwh every month.

“This solution is expected to result in a turnaround of Kenya Power’s current financial position by reducing energy losses,” Kenya Power board papers read.

Tags: Kenya PowerSafaricom
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Richard Okenye

Richard Okenye

"The Geek shall inherit the earth." [email protected]

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