The Kenya Revenue Authority (KRA) has announced plans to sell off transformers shipped into the country by the Kenya Power and Lighting Company (KPLC) by means of a public auction, following Kenya Power’s failure to clear various taxes associated with the shipment.
“Unless the under-mentioned goods are entered and removed from the Customs Warehouse within thirty (30) days from the date of this notice, they will be sold by public auction on August 12, 2021,” the taxman noted in the Kenya Gazette notice of Friday, July 9.
The transformers were shipped into the country in 2014, at a time when the state-owned monopoly was embarking on an ambitious plan to bring millions of homes onto the grid. It remains unclear why the firm has delayed to clear taxes and storage fees for the transformers.
While it has consistently posted losses in recent years (it posted a pretax loss of Sh7.04 billion for the financial year to June 2020), Kenya Power’s customer base has in the last seven years grown from just over 2 million to 7.6 million thanks largely to the last mile electrification program.
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It’s network has grown from 56,611 kilometres to 84,681 kilometres over the same period.
However, it hasn’t been smooth sailing for the company as frequent power outages, the high cost of power and break-downs in the transmission network have seen many of its biggest customers – including industries and schools – begin to reduce reliance on Kenya Power by prioritizing generation of their own power.
The rise of solar in particular has been driven in Kenya by industries and organizations looking to operate sustainably while significantly reducing their power costs.
Kenya Power transformers have long been targeted by daring vandals, with stories often ending in tragedy.
Oil extracted from the transformers is reportedly used to fry snacks including chips at various eateries, stalls and restaurants while the transformers and copper wires are also sold as scrap metal.
Kenya Power has explored various possibilities in a bid to get back on its feet – including venturing into solar and undertaking a multi-billion shilling upgrade of its existing transmission network to reduce outages.
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