The Nairobi County government has agreed to pay Sh1.55 billion as part of a debt to Kenya Power, softening an earlier hardline stance that triggered a retaliatory standoff between the two entities in 2025.
The county made the disclosure in its debt management plan but did not state when it will remit the money.
Nairobi County had an unpaid power bill of Sh3.01 billion at the end of 2024, making it the biggest defaulter among the 47 counties.
Payment plan
Kenya Power and Nairobi County have, in recent years, been involved in public disputes over unpaid electricity bills.
The electricity distributor has on several occasions disconnected power supply to City Hall, drawing retaliation by the devolved unit, including clamping of its vehicles and dumping of waste at the utility’s premises.
‘Finally, a plan has been developed for remittance of Sh1.55 billion owed to Kenya Power Company, subject to verification of meters,’ the county says in newly published disclosures.
In April last year, Governor Johnson Sakaja told Parliament that Nairobi County would cross-check the bill against all meters to determine what would be paid to Kenya Power.
Remittance of the money marks a shift from an earlier position where the Sakaja-led administration had repeatedly resisted Kenya Power’s push to recover the unpaid electricity bills.
Wayleave row
City Hall wrote to Kenya Power in December 2024, demanding Sh5.64 billion in unpaid wayleave charges that accrued from 2016 to 2024.
It is, however, unclear whether City Hall is still pursuing the Sh5.64 billion claim.
The county bases this demand on its Finance Act 2025, which introduced charges of between Sh150 and Sh200 per metre for any electricity line on its territory.
The demand for settlement of the wayleave bill came weeks after disclosures from the National Treasury showed that City Hall had yet to pay Sh3.01 billion for power.
Inability to collect payment from counties is a major challenge for Kenya Power and has prompted the utility to seek help from Parliament to recover the billions of shillings owed.