Kenya Power blocked from cutting supply to essential facilities over unpaid bills

Kenya Power has been barred from disconnecting electricity to essential county government facilities over unpaid bills. The restriction covers hospitals, fire stations and other critical public services.

The High Court ruled that the utility must report county debts to the Treasury, pursue dispute resolution and give 30 days’ written and public notice before disconnecting county facilities. The judgment followed a February 14, 2025 dispute with Nairobi County after Kenya Power disconnected power to several county offices.

Power was restored after mediation by Head of Public Service Felix Koskei. A petitioner, Charles Waithaka Rubia, sued in the public interest, naming the Energy Cabinet Secretary and Attorney-General as respondents. Nairobi County and the Council of Governors were interested parties.

Nairobi County said Kenya Power owed it Sh4.8 billion in wayleave fees. The utility said the county owed Sh3 billion in electricity bills. The county disputed the figure.

The dispute escalated, with the county blocking access to Kenya Power premises, cutting water and sewer services and dumping garbage outside Stima Plaza. The court found the dispute over electricity, wayleave fees, land rates and related claims was an intergovernmental dispute under the Constitution and the Intergovernmental Relations Act.

Kenya Power had argued that, as a listed company rather than a government entity, it was not bound by Article 189. That article requires the two levels of government to cooperate and resolve disputes through alternative mechanisms.

The court rejected the argument. It noted that the national government controls 50.1 per cent of Kenya Power’s shares and appoints the majority of its board.

“In substance, the first respondent is an agency and instrument of the national government in the electricity sector. Form must yield to substance,” the court said. The corporate veil could not exempt an organ of national government from a constitutional obligation of comity.

The court also relied on Section 161 of the Energy Act. That section requires outstanding government electricity bills to be reported to the National Treasury for onward reporting to Parliament for appropriation.

There was no evidence that Kenya Power had reported Nairobi’s outstanding bills before disconnecting the county. The February 14 disconnection was therefore unlawful.

The court reached a different conclusion over threatened disconnections. The petitioner told the court that Kenya Power had threatened to disconnect Pumwani Maternity Hospital, mortuaries, fire stations and installations supporting night-time sanitation operations.

Kenya Power did not deny those threats on oath. The court found that such threats amounted to threatened violations of rights to life, dignity, healthcare, water, sanitation and emergency medical treatment.

“A threat by a monopoly supplier, with a proven record of carrying such threats out, to disconnect a maternity hospital is a threatened violation of the rights to life,” Justice Jairus Ngaah said.

The judgment does not cancel Nairobi County’s debt or prevent Kenya Power from pursuing lawful recovery of the unpaid bill. Kenya Power and Nairobi County were ordered to refer their outstanding mutual claims to alternative dispute resolution within 60 days.

The utility was barred from disconnecting or threatening to disconnect hospitals, health facilities, water and sewerage installations, fire stations, mortuaries and street lighting over county financial disputes unless it completes the required steps.