City Hall hits back at Kenya Power, says it is owed Sh347m
What you need to know:
Last week, Kenya Power wrote to the Nairobi County government, threatening to disconnect supply of electricity over unpaid bills amounting to Sh1.3 billion.
City Hall has hit back claiming that it is the one owed by Kenya Power.
In June, a deal was reached between the two parties for City Hall to pay Sh15 million upfront and thereafter remit monthly installments.
The agreement came after Kenya Power cut supply to the City Hall annex over a Sh990 million debt that has now risen to more than Sh1 billion.
The debt row between City Hall and Kenya Power took a twist on Monday when the former claimed to be the one owed by the latter.
Last week, Kenya Power wrote to the Nairobi County government, threatening to disconnect supply of electricity over unpaid bills amounting to Sh1.3 billion.
DISCUSSIONS
The state agency accused City Hall of defaulting on a deal they struck a few months ago on how to settle the humongous bill.
In a letter addressed to Nairobi Governor Mike Sonko, Kenya Power has sought further discussions on the matter, failure of which it will be forced to disconnect supply until the bill is fully settled.
“We wish to request an appointment with you at your earliest convenience to discuss the best way forward,” reads part of the letter signed by Kenya Power Acting Chief Executive Officer Jared Omondi.
On Monday, however, City Hall hit back claiming that it is the one owed by Kenya Power.
Acting County Secretary Pauline Kahiga said Kenya Power owes the county Sh347 million.
Ms Kahiga, in the letter dated October 1, said that county owes the state agency only Sh540 million as a court had ruled against a Sh950 million claim put forward by Kenya Power in July.
BREAKDOWN
Ms Kahiga went on to explain that Kenya Power owes the county Sh748 million in wayleave claims and Sh68 million in sub-station rent, a total of Sh816 million.
"If we are just trading in, the balance would have been Sh134 million (Sh950 million less Sh816 million). So far the county has paid you Sh30 million, leaving a balance of Sh104 million," Ms Kahiga said.
"There was another wayleave claim of Sh451 million which the national government was to be engaged in its settlement. This is still pending. If this is deducted from your bill, then Kenya Power owes Nairobi County government Sh347 million, " the letter stated.
In June, a deal was reached between the two parties for City Hall to pay Sh15 million upfront and thereafter remit monthly installments.
The agreement came after Kenya Power cut supply to the City Hall annex over a Sh990 million debt that has now risen to more than Sh1 billion.
The disconnection affected offices of county executives offices and the governor and prompted City Hall to impound a Kenya Power vehicle parked within the city center.
