How Kenya Power Made Ksh3 Billion From Internet Business

Kenya Power MD Bernard Ngugi and Rai Cement Ltd Group Finance Controller Rakesh Kumar hold a discussion during a tour of Rai Cement in Muhoroni town, Kisumu County
Kenya Power MD Bernard Ngugi and Rai Cement Ltd Group Finance Controller Rakesh Kumar hold a discussion during a tour of Rai Cement in Muhoroni town, Kisumu County
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Kenya Power’s entry into the internet data market has seen the company reap upwards of Ksh3 billion.

Kenyans’ fast-rising consumption of internet data saw the company launch its data operations in 2010 and has laid more than 4,000km for fibre optic cable. 

The electric firm uses the cables to operate the national power grid and leases the excess capacity to telecommunications companies. 

Kenya Power Building in Nairobi CBD
Kenya Power Building in Nairobi CBD.
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Kenya Power was issued with a Network Facility Provider - Tier 2 License by the Communications Authority of Kenya and developed a telecommunications business unit, “U-Telco” for its fibre optic business. 

The firm’s fibre optic cable rides on the existing extensive power transmission and distribution network across the country.

The digitization of Kenya’s economy and work processes have seen the demand for fibre connectivity shoot up.

To maximise this data cash cow, Kenya Power has planned to add another 600km of fibre cable.

“KPLC fibre optic cable network is growing at a very fast rate to meet internal primary telecommunication needs as well as to serve external customers who lease fibre capacity,” the company announced.

Nairobi, Coast, Mt Kenya and North Eastern regions will benefit from 277.5km of cable in the first phase.

The second phase will target the Central Rift, North Rift, Western, South Nyanza regions with 323km of cable.

With increased mobile and internet penetration, the ICT and communication sector presents an opportunity for the adoption of new trends in the market.

The adoption of remote working was accelerated by the Covid-19 pandemic which put a strain on mobility.

Fibre connectivity has also created unique solutions for home security systems where homeowners are able to monitor their houses even while away.

Kenya Power and Lighting Company engineers load a transformer onto a lorry.
Kenya Power and Lighting Company engineers load a transformer onto a lorry.
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KPLC