Kenya Power reported an increase in electricity losses, which rose to 23.65 percent in December 2024 from 23.16 percent in June, marking the highest level in at least a year.
The surge highlights the challenges the utility faces in curbing inefficiencies that cost it millions in potential revenue.
System losses represent the difference between the electricity purchased from producers and what is ultimately sold to customers. Reducing these losses is crucial to safeguarding gains from growing electricity sales.
“The system losses as of December 2024 were 23.65 percent. KPLC has targeted to reduce the losses further by the end of the financial year as aligned in the strategic plan,” the utility firm stated in response to queries regarding power system losses.
In an article published by Nation, the utility firm further explained that there were also grid-level projects being implemented by Ketraco targeting to reduce transmission on the long 132 kilovolt (kV) lines.
Kenya Power has attributed the high losses to the extensive use of distribution lines in place of proper transmission lines, noting that lower voltage leads to higher system losses. Electricity theft, especially in informal settlements, has also been identified as a major contributor to commercial losses.
The rising system losses are undermining Kenya Power’s efforts to boost sales and profitability. The utility is unable to pass these losses on to consumers beyond the 18.5 percent cap set by the energy regulator. System losses fall into two categories: technical losses, linked to transmission and distribution inefficiencies, and commercial losses, which stem from illegal connections and meter tampering.
For decades, Kenya Power has struggled with an aging infrastructure, a key factor in its persistent electricity losses. Financial constraints have limited its ability to carry out necessary network upgrades.
Despite these challenges, the firm recorded a five percent increase in electricity sales, reaching 5,506 Gigawatt-hours (GWh) in the half-year ending December 2024, up from 5,225 GWh in the previous period. However, sales could have been even higher if system losses were lower, underscoring the importance of addressing the issue to drive revenue growth.
Kenya Power reported a net profit of Sh9.97 billion for the half-year ending December 2024, a remarkable increase from the Sh319 million posted in the previous period. Tackling system losses remains a priority for the utility as it seeks to enhance financial performance and service delivery.
The rising electricity losses could translate to higher costs for consumers if the inefficiencies persist. With Kenya Power unable to recover excess losses beyond the regulatory cap, the company may struggle to sustain affordable tariffs and service improvements.
Additionally, illegal connections and power theft contribute to unreliable electricity supply, affecting businesses and households that depend on consistent power for daily operations.
