Kenya Power has reported a continued rise in electricity system losses, which climbed to 23.65% in December 2024, up from 23.16% in June, marking the highest level in at least a year. The persistent increase highlights the utility’s ongoing struggles with inefficiencies that cost millions in potential revenue.
Understanding System Losses
System losses refer to the difference between electricity purchased from producers and the amount sold to customers. These losses are categorized into:
✅ Technical losses – Due to inefficiencies in transmission and distribution systems.
✅ Commercial losses – Resulting from illegal connections, power theft, and meter tampering.
Kenya Power’s Response
Kenya Power has acknowledged the issue and outlined measures aimed at reducing these losses.
📌 “The system losses as of December 2024 were 23.65%. KPLC has targeted to reduce the losses further by the end of the financial year as aligned in the strategic plan,” the utility stated.
The company is also collaborating with KETRACO to implement grid-level projects that will reduce transmission losses on long 132-kilovolt (kV) lines.
Key Challenges Behind Rising Losses
🔹 Reliance on Distribution Lines – Instead of proper transmission lines, leading to higher losses due to lower voltage levels.
🔹 Electricity Theft – Widespread in informal settlements, contributing to significant commercial losses.
🔹 Aging Infrastructure – Financial constraints have hindered necessary network upgrades, worsening technical inefficiencies.
🔹 Regulatory Cap on Loss Recovery – The Energy and Petroleum Regulatory Authority (EPRA) caps recoverable losses at 18.5%, meaning excess losses eat into profits instead of being passed on to consumers.
Financial Performance vs. System Losses
Despite the challenges, Kenya Power reported a 5% increase in electricity sales, reaching 5,506 GWh in the half-year ending December 2024, up from 5,225 GWh in the previous period.
📈 Net Profit Surge: The company posted a remarkable net profit of KSh 9.97 billion, a sharp jump from KSh 319 million in the previous period.
However, the rising system losses remain a major financial concern, as sales could have been significantly higher if inefficiencies were minimized.
Impact on Consumers & Businesses
📉 Potential for Higher Tariffs – If losses persist, Kenya Power may struggle to maintain affordable electricity rates.
⚡ Unreliable Power Supply – Illegal connections contribute to frequent blackouts, affecting businesses and industries.
💰 Financial Strain on Kenya Power – Unrecoverable losses impact the company’s ability to invest in network upgrades and service improvements.
Way Forward
Kenya Power must prioritize:
✅ Expanding transmission infrastructure to reduce technical losses.
✅ Strengthening anti-theft measures in informal settlements.
✅ Modernizing the power grid through network upgrades.
✅ Leveraging advanced metering technology to curb meter tampering.
As Kenya Power navigates these challenges, addressing electricity losses will be key to sustaining profitability, improving service delivery, and ensuring stable power supply for millions of customers.
