Kenya Power is set to lose Unilever Tea Kenya, one of its biggest customers, even as the manufacturer plans to set up its own power generating plant that will cover its Kericho and Bomet plants.
Unilever has revealed that it will apply for a licence to generate and distribute electricity in a bid to beat Kenya Power’s high cost of electricity and blackouts.
“Unilever Tea Kenya Plc…intends to apply for a licence for the generation, transmission and distribution of electrical energy for use within its estates in the West Kenya area that encompass Kericho and Bomet counties,” said Unilever.
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The electrical power will be generated, transmitted and distributed from existing power stations to be upgraded at Kimugu and Jamji Power stations located 10Km North-East and 20Km South-west of Kericho town respectively to serve the company’s installations around the said estates.
Unilever joins East African Breweries Limited (EABL) subsidiaries – Kenya Breweries Limited (KBL) and East Africa Maltings – which have applied for electricity generating and distribution licences even as they seek to disconnect from the national grid.
Kenya Power has been experiencing reduced electricity demands even as heavy-consuming industrialists seeking reliable and cheaper supply shift to solar power.
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In 2020, total electricity demand decreased to 11,603.6 GWh from 11,620.7 GWh in 2019,with domestic demand falling to 8,796.4 GWh from 8,854.0 GWh in the same period, according to the Economic Survey Report (2021).
Electricity sales to large and medium commercial category declined by 3.6 per cent to 4,281 GWh while transmission and distributive losses amounted to 2,790.7 GWh, or for 24.3 per cent of total domestic generation in 2020.
Kenya Power’s industrial customers account for 54.8 percent of its sales revenues.
Kenya Power recorded a net profit of Ksh1.49 billion in the financial year ended June 2021, an improvement from a loss of Ksh939 million registered in the year ended June 2020.