Time flies with great content! Renew in to keep enjoying all our premium content.
Prime
Nairobi set for clash with Kenya Power in wayleave fees plan
Technicians from the Kenya Power and Lightning Company (KPLC) conducting repairs on fallen electricity powerline poles which fell to the ground along Argwings Kodhek Road from a fallen transformer on May 04, 2024.
Nairobi County is seeking to charge wayleave fees on Kenya Power and Kenya Electricity Generating Company (Ketraco), setting the devolved unit on a collision path with the Energy Act 2019 amid fears that the fees could trigger a rise in electricity prices.
The charge is contained in the County Finance Bill, 2025 and includes an application fee of Sh5,200 per instance for lines of one to two kilometres and Sh6,500 per instance for two to five kilometer lines.
Lines exceeding five kilometres are expected to attract an application fee of Sh6,500 per kilometer.
But the proposal goes against the Energy Act 2019 which says that all charges in the electricity sector must be approved by the Cabinet Secretary for Energy and Petroleum.
Currently, Kenya Power only pays a one-off fee to counties for high-voltage lines and introduction of the charges on all its lines could trigger a rise in electricity bills as the firm passes the additional costs to consumers.
The wayleave charges will also apply to fibre optic cables running on the Kenya Power lines, in what could prompt telcos to increase the price of internet packages.
Wayleave is a right of way granted by a landowner in exchange for payment and allows for installation of power, sewer or pipelines.
Kenya Power has been entangled in battles with Nairobi County over the push to charge wayleave on the electricity lines that span thousands of kilometres.
The county has on several occasions demanded billions of shillings from Kenya Power in wayleave fees, whenever the utility pushes for settlement of electricity bills.
Ward representatives in Nairobi County are yet to debate the County Finance Bill 2025, leaving Kenya Power, Ketraco and telcos such as Safaricom facing an anxious wait over the proposed wayleave charges.
Senators are also pushing to have counties charge wayleave without seeking approval from the CS despite warnings that introduction of the charge could set the stage for a rise in electricity bills.
The Energy (Amendment) Bill 2025 seeks to grant county governments the autonomous authority and bypass the relevant CS in levying wayleaves fees on energy and telecommunications lines.
CS for Energy and Petroleum, Opiyo Wandayi recently warned that electricity bills could spike if the Senate passes a law that seeks to bypass the Energy and Petroleum CS in charging Kenya Power wayleave fees.
Electricity prices have dropped amid a stable shilling, reduced use of thermal power and unchanged fuel prices. For example, a domestic consumer using 30 to 100 kilowatt-hours (kWh) is now getting 12.6 units for Sh500 compared to the 12.2 units received for a similar amount last month.
