Kenya Power to spend Ksh 40B in network expansion

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Kenya Power plans to spend Ksh 40 billion in network expansion over the next one year for the utility firm to add more customers.

Kenya Power that is targeting to increase its customers to 7.5 million over the next three years, plans to commercialize its fiber optic cable to generate some of the cash to finance the power network expansion.

The total installed capacity currently stands at 2333MW bolstered by intense geothermal generation while peak demand is 1,656MW.

Demand for electricity for the year to June 30th grew 4.4%.

Even though a bulk of electricity customers is small and medium power consumers, large power consumers are 4,075 in number.

The utility firm projects to take a hit from the current political environment.

Year on year customer numbers grew 32% to Ksh 6.2 million in the year to June this year with the company targeting to add 1.3 customers by the year 2020

With revenue surging 6% to Ksh 92 billion driven by the street lighting programme that registered a 42% growth in sales, Kenya Power plans to commercialize its fibre optic cable to diversify the revenue base.

A drop in hydro generation as a result of dry weather patterns experienced late last year as well as early this year saw the fuel cost increase from Ksh 12.7 billion to Ksh 22.1 billion.