Electricity distributor Kenya Power has announced plans to allow private companies to sell power directly to consumers.
In a notice on Monday, the company invited bids from qualified electricity retail entities that will be allowed to sell the electricity on a commission basis.
Kenya Power enjoys exclusive control of electricity retail, but the law allows independent players to venture into the business.
According to Kenya Power, the agreement is expected to improve service delivery and public safety within the selected areas.
"In pursuit of its vision to deliver excellent services to all the sectors of the economy and to differentiate its offerings, Kenya Power is exploring innovative retailing models for electricity within designated selected high density settlement areas who have hitherto not been adequately served," read the notice in part.
"Kenya Power is now seeking for suitable entities/agencies through this Expression of Interest (EoI), which will be used to identify and prequalify retail Agents or Partners and will solely use the information for completing its prequalifi cation exercise and thereafter in the preparation of a Request for Proposal (RFP) document, which will be issued to the pre-qualified retail partners."
The nine slums are Mukuru, Kibera, Mathare, Kibagare, Deep Sea, Mji wa Huruma, Githogoro, Kiambiu and Kamukunji.
Broken down the 42 estates, all drawn from the slum areas are, Mukuru kwa Reuben, Mukuru kwa Njenga, Sinai, Lunga Lunga, Shimo la Tewa, Masai, Fuata Nyayo, Moto Moto, Wape Wape, Vietnam, Riara, Crescent, Sisal, Zone 48, Kingstone, Jamaica, Gatwekera, Soweto, Lindi, Laini Saba, Makina, Silanga, Raila, Kianda, Kisumu Ndogo, Kambi Muru and Mashimoni.
Others are Ngomongo, Mathare 4B, Korogocho, Gitathuru, Kosovo, Gitari Marigu, Kibagare, Deep Sea, Mji wa Huruma, Githogoro, City Carton, Kiambiu, Kamukunji Jua Kali, Muthurwa Market and Biafra.
Terms of Agreement
According to Kenya Power, all interested applicants are expected to indicate how they will construct and maintain medium and low voltage network, install and collect revenue from meters or sub-meters, enforce power safety standards and security of installations as well as handle customer care.
The applicants will also be compensated in one of two modes; through bulk purchase of power and resale or commission on energy sales.
"This invitation for Expression of Interest shall lead to the pre-qualification of eligible entities/agencies. The pre-qualified entities/agencies will then be invited through a Request for Proposal (RFP) to submit both technical and commercial proposals to carry out the assignment," added the statement.
Applicants must make their submissions before October 18, 2023 at 10:00 am.
With the new arrangement, private entities will have a chance to tap into the lucrative electricity supply business model reaching up to 500,000 households.
In recent months, Kenya Power has grappled with power outages including instances where the entire country was left in the dark for hours. The most impacted were businesses operated in informal settlement areas.