KPLC (Kenya Power and Lighting Company) is a limited liability company responsible for the

transmission, distribution and retail of electricity throughout Kenya. KPLC owns and operates

the national transmission and distribution grid, and is responsible for the scheduling and dispatch

of electricity to more than 600,000 customers throughout Kenya.

KPLC is responsible for ensuring that there is adequate line capacity to maintain supply and

quality of electricity across the country. The interconnected network of transmission and

distribution lines covers about 23,000 kilometers.

The national grid is operated as an integral network, linked by a 220 kV and 132 kV transmission

network. A limited length of 66 kV transmission lines are also in use.

The national grid impacts on the future growth of the energy sector because any new generation

capacity must take into consideration the existing network and its capacity to handle new loads.

KPLC reinforces the power transmission and distribution network by constructing more lines and

substations. Although the network has been growing at an average rate of 4 per cent over the past

five years, lack of funds has hampered accelerated expansion.

There are, however, plans to expand it substantially to ensure reliable energy transmission. These

include the ongoing construction of 132 kV transmission from Kipevu to Rabai, and the planned

220kV line from Kiambere to Nairobi.

Efficiency of the transmission and distribution network continues to be enhanced in both

technical and non-technical aspects. Planned technical improvements include re-conductoring of

lines, installation of capacitors, and construction of additional feeders and substations. Non-

technical improvements include introduction of electronic meters, improvement of meter reading

accuracy, fraud control and resolution of billing anomalies. KPLC is also undertaking a loss-

reduction study to complement measures aimed at reducing the total system losses, currently at

around 20 per cent.

KPLC has more than 550,000 customers who consume an average of 3.6 billion kilowatt hours

of electricity every year.

In the long term, the installed capacity is projected to increase by 1342 MW between 2004 and

2018/2019 and will comprise geothermal (503 MW), hydro (220.6 MW) and thermal (568.7

MW) sources.

National consumption of electricity is projected to rise from 4.9 billion kilowatt hours in

2003/2004 and 6.9 billion kilowatt hours in 2009/2010 and to 11.8 billion in 20/9/20.

GRID SUMMARY

The electric power sector in Kenya relies largely on renewable energy sources such as hydro

power and geothermal, with the supplement of imported fossil fuels to meet the increasing

demand of electricity. In 2008, total generation reached 6,460 million kilowatt hours (MkWhs),

comprising its main energy sources from hydroelectric power (50%), oil (33%) and geothermal

(16%). A hydro-led power sector frustrated Kenya with the production declined of 9% due to

drought. Oil-fired power plants play an auxiliary role and increased the generation by 23% from

2007 to fill in the shortage of hydroelectric power. Increasing dependency on imported oils may

raise electricity prices and affect other economic activities negatively. Geothermal is gaining

attention with the potential of 4000 MW capacities unexploited in Kenya. To secure the reliable

supply of utilities, Kenya plans to build more power plants with the total capacity of more than

2000 MW from the variety of energy sources including geothermal, hydro, wind, coal, and diesel

by 2015.

National annual electricity retail sales amounted to 4964 MkWhs in 2007 and the steady growth

averaged 5.7% for the last 6 years. Such increasing demand is led by industrial and commercial

sectors (71%) followed by households (23%). However, electricity serves only about 15% of

households including half of urban households and 4 % of rural residences. Urban households

use electricity and kerosene for lighting, while dominant rural dwellers illuminate rooms with

kerosene lamps. Extending grids to those who have no access to electricity has been a major

policy. The networks are extended across the southern part of Kenya from coastal to western

areas through a central capital, totaling the length 41,000km in 2008. The lines also connect

neighboring countries including Uganda and Tanzania to trade the bulk of power and will be

further interconnected with Ethiopia.

Reform of the power sector which commenced in the early 1990s has progressed to promote its

efficiency. The Electric Power Act in 1997 and the Energy Act in 2006 accelerated the reform by

creating an autonomous regulatory body, unbundling electricity utilities to promote more private

investment in generation and reviewing tariffs to improve the financial performance of power

companies. Electricity prices in 2009 averaged USD 8.6 cents per kWh and are relatively

cheaper than those in US (10.34 cents per kWhs). The power utilities of generation, transmission

and distribution are separately managed by three different state companies. Four Independent

Power Producers (IPPs) and an Emergency Power Producer (EPP) supports generation mainly

through thermal plants, accounting for 20% of total power generated. The government

promulgated an ambitious target to connect one million households within five years, so more

public and private investments are expected to develop reliable and affordable supply capacities

in order to achieve thegoal.

Kenya Power and Lighting Company Limited is engaged in the transmission, distribution and

retail of electricity purchased in bulk from Kenya Electricity Generating Company Limited

(KenGen), Independent Power Producers (IPPs), Uganda Electricity Transmission Company

Limited (UETCL) and Tanzania Electric Supply Company Limited (TANESCO). The Company

operates in four regions: Nairobi, Coast, West Kenya and Mount Kenya. Its interconnected

network of transmission and distribution lines covers about 47,035 kilometers. The national grid

is operated as an integral network linked by a 220 kilowatts and 132 kilowatts transmission

network.

"The government of Kenya has a goal to accelerate the access rate ... to at least 40 percent (of the

rural population) by 2020," the company said in a statement on Tuesday. "This growth rate will

see an increase in the number of transformers required by KPLC."

The east Africa nation suffers regular power failure owing to insufficient electricity generation

capacity and a dilapidated transmission network. Business leaders have blamed the power

outages for stunting economic growth.

KPLC estimates less than 20 percent of Kenya's population is wired up to the grid. In rural areas,

the number falls to around 5 percent, it said.

The company plans to upgrade and expand its network over the next four years at a cost of about

$500 million. Kenya hopes the planned investment will help more than double per capita power

cons There are plans to expand it substantially to ensure reliable energy transmission. These

include the ongoing construction of 132kV transmissions from Kipevu to Rabai, and the planned

220kV line from Kiambere to Nairobi. Efficiency of the transmission and distribution network is

enhanced in technical and non-technical aspects. Planned technical improvements include re –

conductoring lines, installation of capacitors and construction of additional feeders and sub-

stations.

Non-technical improvements include the introduction of electronic meters, improvement of

meter reading accuracy, fraud control and resolution of billing anomalies. The KPLC is also

undertaking a loss-reduction study to complement measures aimed at reducing system losses

currently at about 20 per cent.

KPLC last month raised 9.8 billion shillings in a rights issue aimed at upgrading the national

grid.