A major standoff between Kenya Power and Lighting Company (KPLC) and Nairobi County Government escalated on Monday when county officials dumped garbage at Stima Plaza Complex, blocking entrances and cutting off key services.
This drastic action has put the spotlight on a deeper financial dispute, with both entities claiming unpaid debts worth billions. Kenya Power Pension Fund (KPPF)—the legal owners of Stima Plaza—condemned the disruption, labeling it as unwarranted.
The Stima Plaza Standoff: What Happened?
Two days before the garbage blockade, Nairobi Water and Sewerage Company disconnected water and sewer services at Stima Plaza. Despite KPPF’s insistence that all bills were paid, county officials took further action, bringing business operations to a halt.
“We, Kenya Power Pension Fund, are the legal owners of Stima Plaza Complex along Kolobot Road, Nairobi, where KPLC, Cooperative Bank, Health Point Services, and other tenants reside. We strongly condemn this act by county officials that disrupted business operations,” KPPF said in a statement.
The Fund assured the public that they are engaging relevant authorities to restore normalcy.
The Multi-Billion Debt War: Who Owes Who?
At the heart of the conflict is a multi-billion-shilling financial dispute, with each party accusing the other of defaulting on payments:
| Party | Claimed Debt Amount |
|---|---|
| KPLC | Ksh 3.1 billion (unpaid electricity bills by Nairobi County) |
| Nairobi County | Ksh 4.83 billion (owed by KPLC for wayleave fees and other charges) |
Kenya Power’s Side of the Story
Kenya Power argues that Nairobi County has defaulted on electricity bills amounting to Ksh 3.1 billion, prompting them to disconnect power at various county offices.
“We disconnected power in their offices and some installations to push them to clear the bill arrears. When one fails to pay, we have the right to withdraw services,” said Kenya Power General Manager, Commercial & Sales, Rosemary Oduor.
She added that power was restored after the county showed willingness to clear part of the debt.
Nairobi County’s Counterclaim
However, Nairobi County Secretary Godfrey Akumali insists the county does not owe KPLC Ksh 3.1 billion. Instead, he claims that KPLC owes the county Ksh 4.83 billion and has ignored repeated payment requests.
“Let it be very clear—KPLC owes Nairobi County Ksh 4.8 billion. We disconnected their sewer and water because they refuse to pay. They must settle what they owe us,” Akumali said.
Additionally, County Finance CEC Charles Kerich alleged that KPLC has been leasing electricity poles to internet service providers without paying wayleave fees to the county.
KPLC disputes this claim, citing Section 223 of the Energy Act, 2019, which prohibits public entities from imposing levies on energy infrastructure without cabinet approval.
What Happens Next?
Despite the ongoing standoff, both sides express willingness to negotiate and find an amicable resolution.
“We are open to dialogue and committed to settling any outstanding debts,” Akumali said on behalf of Nairobi County.
KPPF reaffirmed its commitment to resolving the impasse and restoring normalcy at Stima Plaza while minimizing disruption to businesses and tenants.
