Kenya Power to lay to fibre optic cables to boost revenue

Kenya Power plans to connect its 2 million customers with fibre optic cable in what is set to change internet connectivity in the country.

The firm plans to spend Sh156bn to expand its existing infrastructure and lay fibre optic optic to its clients in its bid to cushion their earning which dropped by 5.7 per cent.

“If we were to reach 2 million homes and charge only Sh500 per house, this would be Sh50 billion per month. So, that is where the potential is,” Kenya Power’s chief manager for information technology and telecommunications, Samuel Ndirangu, said.

The power distributor’s acting managing director said the firm is now focusing on expanding and leasing fibre optic to its client list in a bid to diversify revenues.

“Leasing out extra fibres contributed additional revenue of Sh1billion in the last financial year,” Mr Ben Chumo said Friday.

Among the power distributor’s list of clients are Safaricom, Jamii Telcoms, Kenya Data Network and Wananchi. It looks to sign up new clients including its sister parastal, KenGen and mobile phone service provider, Airtel.

The firm is also in talks to sign up a company from Uganda on its fibre optic network signalling the growing opportunities even in regional countries.

The firm is targeting to roll out about 25,000 kilometres of fibre optic network to reach households connected to power across the country.

Last year, the firm laid only 200 kilometres of fibre, but has received contracts to lay 400 kilometres of fibre this financial year. It now has over 1800 kilometres of fibre optic connection.

Data connectivity is increasingly becoming a huge area for growth for Internet Service Providers and Telecommunication firms, with telecom firms spending billions of shillings in laying fibre cable network in the country.