By Eddah Waithaka
Nairobi County Government and Kenya Power and Lighting Company (KPLC) have finally resolved a years-long financial dispute that had strained relations between the two entities.
The breakthrough came after a high-level meeting involving Nairobi County officials, Kenya Power leadership, and the Ministry of Energy, led by Cabinet Secretary Opiyo Wandayi.
The meeting, described as “fruitful,” culminated in a joint statement outlining the resolutions and a commitment to end hostilities.The dispute, which dates back several years, centered on conflicting financial claims. Nairobi County had claimed KSh 4.9 billion owed by Kenya Power, while the utility company had initially counter claimed KSh 3 billion.
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After a year-long joint verification exercise, both parties agreed on a settlement amount and a payment process. However, tensions escalated recently when the county government, invoking the National Rating Act 2024, began enforcing remedies such as disconnecting services and clamping buildings to recover the owed funds.
In a press conference earlier during the day, Nairobi Governor Johnson Sakaja emphasized the county’s mandate to collect fees and charges to fund essential services. “The people of Nairobi want their roads fixed, garbage collected, and medicine in hospitals. These services require resources,” he stated.
Sakaja also highlighted the county’s legal right to enforce payment, drawing a parallel to Kenya Power’s practice of disconnecting electricity for non-payment.The recent standoff saw the county government block access to Kenya Power premises and disconnect water supply, prompting public outcry.
The situation worsened when a garbage truck tipped waste near the premises, an incident the governor described as “unfortunate” and not reflective of the county’s operational standards.
The waste was cleared within 30 minutes, and the governor assured that internal measures would address the lapse.During the meeting, both parties agreed to restore normalcy immediately. The county government committed to restoring water supply and removing blockades from Kenya Power premises.
Additionally, they agreed to resolve all commercial disputes through direct negotiations between the governor and the Cabinet Secretary for Energy Opiyo Wandayi, with the Intergovernmental Technical Relations Committee stepping in if necessary.
A key resolution addressed development control, a contentious issue in the dispute. The county government reaffirmed its authority over all development control within its jurisdiction, including power lines and electricity transmission, as stipulated in the Physical and Land Use Planning Act (PLUPA) 2019.
Both parties agreed to adhere to development control regulations, ensuring future projects align with county approvals.The governor expressed satisfaction with the resolutions, noting that the summit chaired by President William Ruto had already emphasized the need for all government institutions to comply with development control regulations.
Sakaja praised Kenya Power for its recent efforts to seek county approval before undertaking projects, a practice he hopes will set a precedent for other institutions.
The joint statement, expected to be issued soon, will provide further clarity on the agreed-upon issues. Both parties have committed to maintaining a collaborative relationship to avoid future disputes and ensure the seamless delivery of services to Nairobi residents.
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