Kenya Power, a leading retailer of electricity, has raised the alarm over the growing demand for solar products as industrialists and heavy consumers seek a reliable and cheaper energy supply.
The energy retailer reported on Friday that some of its industrial customers, who account for 55% of its sales revenue, are gradually shifting to its own generated power, which has caused wide disruption in its finances.
In its statement, Kenya Power reports that this fiscal year has been a challenging environment where demand growth has remained low at 3.7% from the projected 5%.
The shifting change from the grid is also mainly due to deflection to other cheaper renewable energy sources.
Industrial customers who constitute the highest portfolio of revenues contributed Kshs 63 billion in 2019 from purchasing 4.462 Gigawatt hours.
The shift to solar energy may spell doom to the monopolistic retailer. The company reported that it is currently surviving on bank overdrafts and short-term loans to sustain its capital expenditures.