The outstanding debt by the 47 counties to Kenya Power hit Sh3.49 billion on September 24, 2023, the Treasury has revealed, signalling the financial strain on the utility firm.

The debt has been piling over the years with Nairobi County having the largest bill of Sh2.17 billion—an equivalent of 62.17 percent of pending bills by the counties to Kenya Power.

“Consequently, the National Treasury has issued a circular to county governments reminding them to settle debts owed to Kenya Power and ensure that the pending bills are included in their budgets and repayment plans in line with the Public Finance Management Act, 2012,” Treasury Cabinet Secretary Njuguna Ndung’u said.

Kenya Power Managing Director Joseph Siror said in September that the company had also reached out to the National Treasury to help it recover arrears owed to it by large consumers in which the government has a stake and have since run into financial headwinds.

It said it is looking to get the Exchequer’s assistance in recovering at least Sh1.5 billion from entities that have since collapsed, notably sugar millers in the Western region sugar belt and one player in the country’s horticulture sector.

In the Financial Year ended June 2022, Kenya Power’s total overdue debt owed by consumers stood at Sh19.7 billion, having decreased by eight percent compared to the prior year.