Kenya Power should be persuaded to blacklist Stima Loan borrowers who have defaulted on their repayments to clear the backlog of debts and encourage electricity consumers to make prompt payments of utility bills.
All too often, consumers who have been advanced loans to meet the steep cost of connecting their households to the national electricity grid do not make regular payments. The growing debt has had adverse consequences as it means that others who may want similar loans could be locked out owing to diminished liquidity.
The low-interest Stima Loan was introduced to help poor families connect their homes to the national grid. This was from the realisation that access to electricity would open up economic opportunities for the new power consumers and uplift local economies in the outlying counties, in line with the Vision 2030 aspirations.
Even as consumers are prodded to meet their financial commitments, Kenya Power must encourage those who have installed power to pay their utility bills on time. It does now help that more than a million consumers have been disconnected because they have not paid their monthly dues. Even as more consumers sign up to install electricity in their homes, every effort must be made to keep the tariffs affordable through a conducive pricing structure.
