The Nairobi County Government and Kenya Power have agreed to end their long-running dispute following a high-level meeting convened by Head of Public Service Felix Koskei.

The meeting, which brought together Nairobi Governor Johnson Sakaja and Energy Cabinet Secretary (CS) Opiyo Wandayi, sought to settle commercial disputes between the two entities, emanating from over Sh4.9 billion in unpaid wayleave fees owed to the County by Kenya Power.

The government and the Kenya Power and Lighting Company (KPLC) feud was settled at the intervention of Head of Public Service Felix Koskei.

Morning meeting

Koskei chaired an early morning meeting that lasted more than four hours, attended by Energy Cabinet Secretary Opiyo Wandayi at which both parties reached an agreement on the debts owed and a structured repayment plan.

The dispute, which has persisted for years, revolved around unpaid wayleave fees claimed by the devolved unit and outstanding electricity bills owed to KP.

Briefing journalists after the meeting Sakaja, said the hostility between the county government and KPLC had been ended.

Sakaja ordered the removal of garbage trucks that had blocked entrances at the building owned by the utility company as well as directing the immediate restoration of water supply to Stima Plaza, which had been cut off as part of City Hall’s efforts to pressure Kenya Power into settling outstanding way leave fees.

“It was unfortunate that one of the trucks tipped garbage. That was not the intention, and that is why the garbage was cleared in less than 30 minutes,” he stated.

He distanced himself from the dumping incident and said internal action would be taken against those responsible.

He said the two parties have reconciled the disputed amounts and agreed to an amicable resolution after a joint verification exercise lasting a year.

“This matter has had a history, it has been a matter running over many years where the county has claimed money owed to it, around 4.9 billion to be exact. And Kenya Power had claims against the county government. Initially, the claim was at, Sh3 billion when undertaking a joint verification exercise,” Sakaja stated.

“We settled on an amount and we agreed on a payment process. The county government is mandated to collect fees and charges as well because the people of Nairobi want services,” he added.

The dispute had escalated when KPLC disconnected power to several county facilities over unpaid electricity bills, disrupting essential services. In response, the Nairobi County Government exercised its enforcement powers under the National Rating Act 2024, which allows counties to take action against defaulters.

Dumped trash

The county had deployed garbage trucks to block access to KPLC offices, and in an unexpected turn, one of the trucks dumped trash at the entrance. Governor Sakaja acknowledged that the incident was regrettable but defended the county’s right to enforce its mandates.

“Just as Kenya Power disconnects electricity for non-payment, the county has legal remedies, including withdrawing services, clamping buildings, and enforcing development control regulations. However, we have now agreed to resolve our issues through dialogue,” he stated.

His directive came after lawmakers demanded that action be taken on Nairobi Governor Johnson Sakaja for allowing the dumping of garbage to happen yet the issues could have been resolved through other means.

Regarding the unpaid electricity bills and wayleave fees, the governor explained that the matter would be resolved separately between his office and Energy CS Wandayi.

“We agreed those commercial disputes would be resolved between Wandayi and I. If need be, the Intergovernmental Technical Relations Committee will be involved,” Sakaja stated.

“All government institutions must adhere to development control regulations. KeNHA before doing any road must seek approval from the county government.”

He added that the wrangles escalated after Kenya Power fired the first shot by turning off electricity despite an agreement established in December 2024.

“We had meetings as recently as December and agreed on how we’d resolve our issues but when you disconnect us at will, then we’re also entitled to enforce.”