Kenya Power joins Zuku, Safaricom in internet selling market
Kenya Power now seeks to venture into the internet selling market with the introduction of high-speed internet.
The power utility will first target its corporate users as tests have already commenced in larger power stations with the expectation to roll out similar services to its rural customers.
The electricity distributor, who has been renting its fibre optic cables to Internet Service Providers (ISPs) such as Safaricom, Zuku, and Jamii Telecoms, has set it at an advantage as the foundation of having optic cables is already in existence.
Kenya Power will look to provide its customers in the corporate division with a bundled service that will comprise both electricity and the internet.
“Kenya Power will leverage on our vast network to tap into the market…we will offer the corporates the option of using our internet for their primary use or redundancy.”
As Video-On-Demand Services (VODs) continue to rise in the country, the distributor has made a promise to offer internet services that are affordable as it attempts to gain market share.
The move is informed by the ongoing reforms at Kenya Power, under the watch of Energy Cabinet Secretary Monica Juma.
Kenya had a population of 54.38 million in January 2021.
Internet penetration in the country stood at 40.0 percent in January 2021, with 21.75 million internet users.
According to the Kenya National Bureau of Statistics (KNBS), 28.2 percent of Kenya’s population lives in urban centres, while 71.8 percent lives in rural areas.
Kenya Power, which enjoys a power distribution monopoly in the country, is keen to expand its revenue bracket.
After years of making huge losses, Kenya Power has managed to bounce back to profit-making times after it record Ksh.3.8 billion after-tax profit for the year ended December 31, 2021, compared to Ksh.300 million it made same period the previous year.
“This was driven by an increase in customer connectivity, as well as improved supply quality and reliability due to enhanced preventive maintenance works, network refurbishment and accelerated faulty meter replacements,” said Kenya Power on Friday.
On January 7, Kenya Power effected the 15 percent reduction of power tariff in the country.
The changes are expected to run for a 12-month period starting January 2022 to December 2022.