The High Court has barred Kenya Power from disconnecting electricity to county governments over unpaid bills without first exhausting the government dispute resolution mechanism.

🇰🇪 Breaking It Down

In a recent ruling, the court ruled that disputes between Kenya Power and county governments over electricity charges constitute intergovernmental disputes and must be handled in accordance with the Constitution and the Intergovernmental Relations Act.

According to the court, Kenya Power is an agency and instrument of the national government in the electricity sector.

Therefore, the power company could not avoid the constitutional requirements governing relations between the national and county governments by relying on its corporate status.

📌 What You Need to Know

"The corporate veil cannot be deployed to exempt an organ of national government from a constitutional obligation of comity," the judge ruled.

The court ruled that Kenya Power must first report outstanding electricity bills owed by county governments to the Cabinet Secretary for the National Treasury under Section 161 of the Energy Act.

The Treasury is then required to report the debts to Parliament for necessary appropriation.

"Where Government or its agencies default in paying electricity bills -Without prejudice to any other remedies available, a licensee which has outstanding uncollected  billings attributable to the National Government, County  Government or any Government agency shall report such  billings to the Cabinet Secretary for the National Treasury who  shall, in turn, report the same to Parliament for necessary  appropriation," the ruling stated.

The case arose after Kenya Power disconnected electricity to several Nairobi County offices on February 14, 2025, over unpaid electricity bills.

The disconnection sparked a public standoff between the utility and the county before power was restored following mediation convened by the Head of the Public Service.

📰 Source: Kenyans.co.ke