Kenya: power utility installs Smart Poles to diversify income stream

Debt-ladened Kenya Power has started a pilot project to install special utility poles (smart poles) that will support the provision of high-speed internet connectivity.

This would form part of the power utility's revenue diversification strategy.

The utility's Managing Director and CEO, Joseph Siror, said the smart poles will provide "an alternative way to deploy last mile data networks using wireless technologies…"

"(It's) a solution for telecom service providers to improve data coverage, capacity and address issues of signal dropouts," said Siror.

In March, local media reported that Kenya Power, 50.08% owned by the state, said in its annual report (2022) that it had obtained an extension of "on-lent debt repayment moratorium approved by the National Treasury amounting to Ksh25.12 billion ($196.25 million) to June 30, 2024."

The repayment date was 30 June 2023.

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And in May, the World Bank announced that it approved a $300 million interest-free loan to Kenya Power to help the utility "pay off its debts, revamp its ageing transmission network, expand the national grid, and reduce system losses."

Meanwhile, Kenya Power said in a press statement that the smart poles pilot project is being undertaken with Safaricom at six locations in Nairobi.

The utility said that once the pilot phase is completed, it will install the poles within its overhead network, which "telecom service providers will lease to mount their wireless transmission equipment."

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Apart from the pilot for smart poles, the company is also in discussion with the Ministry of ICT to develop a framework through which "we will play a critical role in the realisation of the government's digital economy agenda," Siror said.

An AMI project has resulted in an 8% growth in sales due to enhanced accuracy in meter readings, prompt billing and reduced energy pilferage.

The company had also completed the implementation of the Advanced Metering Infrastructure (AMI) project among large and medium customers who make up more than 80% of the total electricity sales.

Through the project, the company said it has installed 67,000 smart meters in small and medium enterprises (SMEs) premises.

It also established six data control centres that "enhance the visibility and monitoring of the smart meters."

The AMI project had seen an 8% growth in sales due to "enhanced accuracy in meter readings, prompt billing and reduced energy pilferage."

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