Court Rules Power Surge Damage Claims Against Kenya Power Are Civil Negligence Matters

The Milimani Commercial Court has ruled that claims for damage caused by power surges or voltage fluctuations against Kenya Power are ordinary civil negligence matters. Such claims fall outside the jurisdiction of the Energy and Petroleum Regulatory Authority and the Energy and Petroleum Tribunal.

The decision arose from a suit filed by Placid View Properties Ltd, owners of the four-star Ole Sereni Hotel. The hotel sought Sh4.2 million in compensation after a voltage fluctuation allegedly destroyed its voltage stabiliser and submersible pump. The case was filed on 3 March 2025.

Kenya Power argued that the suit had been lodged in the wrong forum. It insisted that disputes relating to electricity supply, outages and power surges fall under the exclusive mandate of EPRA and the dispute resolution framework set out in the Energy Act. The utility sought to have the matter referred to the regulator.

Principal Magistrate Linda Akosa Mumassabba rejected that argument. The court held that the dispute was a classic tort of negligence rather than a regulatory issue. Kenya Power, the magistrate found, had failed to demonstrate any statutory mechanism under the Energy Act capable of adjudicating a negligence claim, assessing damages or awarding compensation for destroyed equipment.

The court also dismissed the doctrine of exhaustion defence. Kenya Power could not show that EPRA or the Tribunal possessed legal authority over ordinary negligence claims of this nature. The ruling means the Ole Sereni suit will proceed to a full hearing on its merits. Parties have been directed to appear on 26 August 2026 for pre-trial directions. The hotel was awarded costs of the preliminary objection, and Kenya Power was given 30 days to appeal.

The decision removes a jurisdictional shield that the utility has frequently invoked when facing claims for equipment damage. Consumers and businesses who suffer losses from voltage surges can now pursue compensation directly through the civil courts without first exhausting regulatory channels.

Power quality issues, including surges and fluctuations, remain a common source of complaint across the country. Electronic equipment, industrial machinery, pumps and household appliances are particularly vulnerable. The ruling increases the incentive for Kenya Power to maintain stable supply and respond promptly to system faults.

For the construction and property sectors, the clarification is significant. Hotels, factories, commercial buildings and residential developments often invest in stabilisers and backup systems precisely because of supply inconsistencies. When those systems fail due to grid problems, owners now have a clearer path to seek redress in the ordinary courts.

The full hearing will determine whether negligence is proved and what damages, if any, are payable. In the meantime, the jurisdictional principle has been settled: pure negligence claims arising from electricity supply belong in the civil courts.