Kenya Electricity Generating Company (KenGen’s) penalties to Kenya Power over delayed payments for electricity supplied have hit KSh3.78 billion in the past five financial years. Kenya Power has in the last five years flouted the 40-day window for payments for electricity received from KenGen.
In the financial year ended June 2021, KenGen charged the firm KSh936.28 million, up from KSh800.25 million in the preceding financial year
The latest penalties bring to KSh3.78 billion the amount that the State-controlled utility firm owes KenGen in the past five years — the highest being KSh1.02 billion in the 2017/2018 financial year.
Kenya Power’s current liabilities exceeded its current assets by KSh67 billion as at end of June 2021, making it commercially insolvent. In September last year, the utility received a partial debt restructuring for KSh6.75 billion in a 12-year term loan with a repayment moratorium of 36 months.
Kenya Power currently owes KenGen KSh25.14 billion, with KenGen supplying 8,443 Gigawatt-hours (GWh) for the year in review.
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