CoG and Senate in push to have Kenya Power pay for wayleaves

Governors are now threatening to go to court to repeal the law that shields Kenya Power from paying for wayleaves, even as senators mull amending the law.

A wayleave is described as the right of way for carrying a power line, sewer or drain over or under any lands.

In the move that could deal a huge blow to the utility firm, senators and governors argue that the law is regressive and is not in the best interest of devolution.

“At the Council of Governors level, we are going to challenge the provisions of the Act,” Nairobi Governor Johnson Sakaja said.

At the same time, the senators have resolved to amend the Energy Act 2019 to make it mandatory for Kenya Power to pay for power line wayleaves charges.

They said the decision will enable the devolved units to net the much-needed revenue to continue providing for services.

“We agreed as the Senate that we are going to amend the law,” Nairobi Senator Edwin Sifuna said.

“We are urging the counties to improve, but the national government is working against that. We cannot allow the national government to deny the counties revenue,” Sifuna added.

The revelations emerged during a meeting of the Senate Energy Committee and the governor over the recent fiasco between City Hall and the utility firm.

The two entities are locked up in bitter fights over debt. While KPLC demands Sh1.5 billion for unpaid electricity bills from City Hall, the county government needs Sh4.7 billion from the company for unpaid wayleave charges.

Section 223 of the Energy Act provides that no public body shall charge levies on public energy infrastructure without the consent of the Cabinet Secretary in writing.

However, governors argue that the law was passed in 2019 and thus should not and cannot be applied retrogressively. In addition, the county bosses say KPLC is deriving commercial benefits from the use of the wayleaves besides laying their infrastructure.

“Kenya powers collecting millions of shillings from the internet service providers who are laying their fiber optic cable. That money should go to counties, but KPLC is taking it,” Sakaja said.

He added, “Recently, Kenya Power announced a Sh400 million deal with Safaricom. They are getting a lot of money.”

Last month, Kenya Power warned that paying for power line wayleaves would increase the country’s energy costs by 30 per cent, translating to an additional Sh63.8 billion annually.

Kenya Power Managing Director Joseph Siror said that while the stronger shilling has reduced costs related to foreign exchange and fuel, the proposed wayleave charges could reverse recent electricity price declines.