PRESS STATEMENT

1. Yesterday, 5th June 2018, KPLC disconnected electricity to City Hall and City Hall Annexe.
This is despite the fact that a joint taskforce has been sitting to establish the exact level
of indebtedness both organizations owe each other.

2. We therefore feel that it was in bad faith for KPLC to disconnect supply when this
taskforce was about to conclude its work and make recommendations. This also came
after KPLC on 30th May disconnected electricity supply to Mutuini Hospital for half a day,
despite the ongoing talks.

3. NCCG owes KPLC money for electricity consumption while KPLC owes NCCG money for
rates and wayleaves for its distribution network.

4. On 3rd November 2017, the High Court ruled that KPLC was liable to pay NCCG for
wayleaves for its distribution network and installations. At the time of the case in 2016,
the debt claimed by NCCG was Ksh605 million. It currently stands at Ksh748 million.

5. For its substations, KPLC owes Ksh68 million from 1990 as follows: Accra Road
Ksh2,030,000; Tom Mboya Street Ksh5,800,000; City Hall Basement Ksh2,784,000; and
Uhuru Highway Ksh58,000,000.

6. The total for this alone is Ksh806 million, not including other installations.

7. Nairobi City County Government on the other hand owes KPLC Sh990 million of which the
county has disputed Sh543 million. The matter has been in court and the court on 18 th
May ruled that NCCG should pay. NCCG is in the process of appealing this decision
because it was largely based on estimated electricity bills and not actual readings.

8. Out of the balance of Sh447 million, the NCCG recognizes Sh215 million obtained from
actual meter readings, but has expressed reservations with the balance of Sh232 million
which was again based on estimated readings.

9. In short, NCCG has no problem paying what it owes. We only request that the taskforce
be given time to reconcile these debts. One practical way to deal with this would be for a
debt swap where we net off, and the balance paid by whoever’s debt will be larger.

10. This morning, a team from NCCG went to KPLC to seek an amicable solution. KPLC was
adamant that we must first commit to pay some money before talks resume and
electricity is reconnected. We have responded by reminding them of the over Ksh800
million that they owe us. As a gesture of good faith, and pursuant to our desire to arrive
at an amicable solution, we have offered to pay Ksh15 million now and the balance in
realistic installments until the figure finally agreed upon is settled.
ENDS