Kenya Power says the average rural connection is spending only KSh 7.20 a day on electricity, a figure that, if accurate, underlines a growing mismatch between the company’s expanding customer base and the revenue those customers deliver. The low daily spend helps explain why the utility is increasingly dependent on industrial and affluent urban customers for its topline, even as grid access spreads into more villages.
who, how many, and how much
The Sh7.20-a-day number was highlighted in recent financial reporting as the headline metric showing weak rural spend. Public data shows the scale behind that figure: the rural electrification programme added roughly 134,630 new rural customers in the year to June 2024, pushing rural connections to about 2.35 million accounts.
At the same time, electricity sales from rural areas were estimated at about KSh 12.4 billion for the year, a slight decline from the previous year despite more connections. That combination (more meters but flat or falling sales) is the immediate source of the “Sh7.20/day” story.
What Sh7.20 actually buys
To put it in perspective:
- Sh7.20 × 30 days = Sh216 per month
- Sh7.20 × 365 days = Sh2,628 per year
Based on Kenya Power’s own trading results, the company-wide revenue per unit of electricity sold averages roughly Sh19.5 per kilowatt-hour (kWh). Using that average, Sh7.20 would buy only about 0.37 kWh a day, roughly 11 kWh a month. That is enough for a few LED bulbs for a couple of hours, or for charging a phone and running a small radio, but very little beyond that.
This helps explain why rural accounts contribute little to the company’s overall revenue even as their numbers keep rising.
Why connections don’t equal cash in the bank
Several reasons explain the disconnect between rising rural connections and weak rural revenues:
- Very low household consumption. Newly connected rural households typically use electricity for lighting and phone charging rather than energy-intensive appliances. Monthly bills are therefore very low, even with a functioning meter.
- Solar home systems and off-grid alternatives. Many rural households rely on pay-as-you-go solar kits or standalone systems for their basic needs. These alternatives reduce the need for regular grid consumption and undermine Kenya Power’s potential revenue.
- Tariff structure and affordability. Even small bills can feel unaffordable for households with irregular incomes. Some deliberately limit their usage to avoid arrears, while lifeline tariffs also cap the revenue Kenya Power can earn from small users.
- Metering and energy losses. Technical losses, illegal connections, and under-metering in rural areas erode the utility’s ability to collect revenues. The company has responded with transformer metering and tighter monitoring, but the challenge persists.
What this means for Kenya Power and policy
The short answer: scale without yield is expensive. Extending the grid raises capital and maintenance costs. If newly connected households consume very little, Kenya Power’s revenue growth will lag far behind its cost growth.
This dynamic has several implications:
- Reliance on industrial and urban customers. Kenya Power increasingly depends on factories, businesses, and middle-class urban households to generate revenues. That concentration makes it vulnerable to economic shocks, tariff debates, and political pressure.
- Tariff and policy reform. Policymakers may need to redesign tariffs to protect the poorest while encouraging “productive use” of electricity. For example, small lifeline allowances can remain cheap, but targeted tariffs could encourage rural enterprises such as grain mills, refrigeration units, and welding workshops.
- Productive appliances and financing. Linking electrification with access to productive appliances can drive demand. For instance, if farmers can finance electric water pumps or cold storage, they will use more electricity and earn more income, a win-win outcome.
- Hybrid energy solutions. Not all communities are best served by grid extension. In some cases, mini-grids or solar home systems are more efficient, and partnerships between public and private providers could reduce Kenya Power’s burden.
- Loss reduction. Better billing systems, prepaid meters, and tighter anti-theft measures will be crucial to turning connections into reliable revenues.
Also read: KPLC announces 13.7% reduction in cost of electricity for April
Frequently Asked Questions (FAQs)
- Why do rural households in Kenya spend so little on electricity?
Most rural households use electricity mainly for lighting and charging phones. They often lack energy-intensive appliances, and some prefer to minimize usage due to affordability concerns. - What does Sh7.20 a day mean in terms of electricity consumption?
It translates to roughly 0.37 kWh per day just enough for a few bulbs, charging a phone, or running a small radio. - Why is low rural consumption a problem for Kenya Power?
The utility spends heavily to expand the grid into rural areas. When households consume very little, the revenue collected does not cover the high costs of extending and maintaining the infrastructure. - What alternatives do rural households use instead of the grid?
Many households rely on solar home systems or pay-as-you-go solar kits, which are often more affordable and reliable for basic needs. - How can rural electricity use be increased?
By promoting productive use such as financing appliances for farming, refrigeration, or small businesses households can use more electricity to generate income, which in turn boosts Kenya Power’s revenues. - What policy solutions exist to balance affordability and sustainability?
Tariff reforms, targeted subsidies, hybrid energy systems (mini-grids + grid + solar), and better metering systems can help bridge the gap between access, affordability, and utility sustainability.
