IFC Partners Kenya’s Power Utility Company to Improve Efficiency

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The Kenya Power and Lighting Company (KPLC) will receive advisory support from the International Finance Corporation (IFC) in its country-wide Loss Reduction Strategy aimed at reducing the 19 per cent technical and commercial losses it currently experiences.

The utility’s efforts to reach more customers are hampered by technical losses from inefficient, older equipment or obsolete technology; and commercial losses from unauthorized use and fraud.

“The Strategy includes deploying smart metering infrastructure; load analysis to identity technical losses across the network; proper measurement of losses; installation of low-loss transformers; and reactive power compensation,” Dr.Ken Tarus, Kenya Power Acting Managing Director and Chief Executive Officer said.

The project which builds on a previous advisory engagement by IFC that identified specific actions for KPLC to take to combat losses will support the utility with the implementation of these measures, complemented by efforts in partnership with other development partners.

IFC will also offer training and capacity-building in the engagement expected to catalyze investment in clean energy generation, transmission, distribution and other related infrastructure in Kenya.

National electricity grids are characterized by poor transmission capacity and inefficiencies across sub-Saharan Africa, averaging 23 per cent across the entire region.

IFC intends to partner with other regional utilities to implement similar loss reduction initiatives to improve efficiencies to contribute to better financial viability of these companies which is vital for private investment.

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