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Kenya Power and Lighting Company (KPLC) is set to stop third-party agents from vending electricity to customers effective on Thursday following the expiry of their contracts and the utility’s improved payment system.

The utility said in a notice yesterday that it will only accept prepaid tokens purchase and postpaid bill payment through the mobile channels and authorised banks. 

Kenya Power had contracted about nine firms to sell power on their behalf and earn commission. “Please note that no other third-party agent is authorized to offer these services (token sales) on behalf of KPLC. The company will therefore not take liability for any transaction conducted through any platform,” Kenya Power said in the notice.

Authorised banks

Token purchase will now be limited to the M-Pesa paybill 888880 and 888888 for the  prepaid and postpaid customers respectively. Postpaid  customers can also use only authorised banks listed on the firm’s website while new connections payment can be completed through M-Pesa paybill 888899. About 13 banks, including Equity, KCB, and Co-operative bank are currently authorised by Kenya Power to only offer postpaid bill collection services. Banks that previously offered prepaid tokens services have already started shifting to the new directive.

“Effective 1/9/2022, you will not be able to purchase KPLC prepaid tokens on KCB mobile banking and Vooma. We are working to resolve this issue with KPLC and apologise for the inconvenience caused,” KCB said in a message to customers.

Prepaid third-party vending services is mainly dominated by two firms, Vendit and Dynamo Digital Company Ltd, who have won multiple contracts with Kenya Power in the past despite concerns over the skewed tendering process that favoured the two firms.

Fraudulent deals

The contracted vendors are estimated to have been handling about 10 per cent of the tokens sold as Kenya power handles the remaining capacity. 

The move will now give Kenya Power total control over the sale of tokens that has in the past been the focus for fraudulent deals leading to revenue leaks.