Kenya Electricity Generating Company (KenGen) is owed KES 16.6 billion by Kenya Power and Lighting Company (KPLC) as of mid-2025. While the total debt of KES 16.6 billion hasn’t changed since 2024, the amount that is actually “late” has dropped from KES 6.9 billion to KES 6.3 billion thanks to a steady payment plan.
The remaining balance comes from the ongoing supply of electricity. Since KenGen provides power continuously, there is always a current bill to be paid once KPLC collects payments from customers.
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In a report to stakeholders, the power-generating company notes, “We are in constant discussions with Kenya Power, and we have an agreed monthly payment plan that has seen KenGen being paid for current electricity supplied and part of overdue amounts.”
On average, considering all the PPAs signed with Kenya Power, KenGen sells electricity to the utility company at an average cost of KES 5.40 per kWh.
Energy Act 2019 Open Access Rules
The huge debt KPLC owes has made the power-generating company consider supplying power directly to customers to reduce the business risk of reliance on a single off-taker.
Initially, this was legally impossible as the Energy Act Cap. 314, which governs the energy sector, restricted KenGen to power generation with KPLC as the sole buyer and distributor.
The passing of the Energy Act 2019 opened up the sector to competitors and took away KPLC’s monopoly on power sales.
Under Open Access rules, there is a new opportunity for KenGen to sell electricity directly to large customers instead of selling everything to Kenya Power first.
To do this, KenGen can use the country’s existing power lines to deliver the electricity, as long as they pay a “user fee” for using those lines.
However, KenGen’s entry into the direct sales market is currently on hold because the Ministry of Energy’s regulations are incomplete. Without clearly defined terms and guidelines, the framework for KenGen to operate as a direct seller remains unofficial.
“What is pending are regulations of how that regulation will be undertaken and how infrastructure will then be based on wheeling charges for using transmission lines. But we are certain that when the regulations by EPRA are ready and proper guidelines are issued, that possibility will in the future be there,” KenGen wrote.
