Local utility firms go digital in efficiency, transparency push

The two utilities say digital tools are improving turnaround time for applications payments and complaints, while eliminating queues and paperwork that previously defined customer interactions across electricity and water offices.

Last month, Kenya Power updated the MyPower App to allow customers to manage multiple accounts, buy tokens, as well as track usage, while its AI-powered chatbot Nuru, now handles real-time queries through its website and social media channels.

Nairobi Water, on its part, has introduced full online onboarding for new customers, while sending bills exclusively through email and SMS, ending the paper trail that sustained decades of manual processing.

“We are embracing digital transformation to make Nairobi Water a smart utility for a smart city. Technology is helping us improve efficiency, reduce losses and enhance convenience for our customers,” said acting Managing Director Martin Nang’ole.

A latest audit report shows that during the year to June 2024, 76 public water companies across the country lost Sh15.9 billion on water not billed to customers, revealing the burden the service providers face due to the use of outdated equipment and illegal connections.

The firms are leveraging digital tools to achieve operational efficiency by linking data management systems with customer accounts, allowing faster validation of consumption patterns and improving the accuracy of billing records.

At Nairobi Water, executives describe digital monitoring as essential to reducing non-revenue water losses, which have historically drained resources from expansion and maintenance budgets.

Kenya Power’s customer interactions through MyPower App hit 2.02 million during the year to June 2025, while its USSD requests stood at 1.84 million, indicating rising preference for self-service platforms.

The increased uptake has reduced customer calls by about 900,000, underscoring the impact of automation in cutting pressure on contact centres and lowering administrative overheads that have long inflated costs.

Kenya Power Board Director Ruth Muiruri has linked customer convenience to better collections, saying predictable and responsive service builds trust and stabilises revenue for future infrastructure investments.

“We are keenly listening to the feedback from our customers to develop products and strategies that empower them to engage with us proactively, because we know when customers are happy, they pay willingly, losses reduce, revenues grow and our financial position strengthens,” she said last month during the launch.

Nairobi Water says digitising its application processes has also removed manual bottlenecks, making it easier for developers and investors to secure connections needed for construction approvals and property occupation permits.

By going digital, the utilities are reorganising the commercial ecosystem that once depended on paper transactions and physical billing networks that were chiefly managed by the Postal Corporation of Kenya (PCK).

Posta Kenya has, over the years, earned steady commissions as a billing agent for major utilities, processing payments at post office counters before online channels disrupted that revenue stream.

PCK’s dwindling revenues have seen the corporation turn to cost cutting drives in recent years, including layoffs, to remain afloat.

On their part, the utilities reap a range of dividends from the digital shift, including lowered transaction costs faster reconciliation of receipts and reduced human error which, together, improve revenue assurance and shrink the window for leakage or fraud.

Reduced dependence on paper billing also means lower printing distribution and archiving expenses, which historically burdened both parastatals and their payment agents.

The initial rollout, however, demands sustained investment in software, system security and staff training to maintain uptime and prevent cyber disruptions that could paralyse customer billing cycles.

Kenya Power and Nairobi Water have retained USSD services to accommodate users without smartphones, ensuring that essential functions like payments and inquiries remain accessible to those outside internet coverage zones.

Globally, the debate over full digitisation has intensified, with Europe’s Ryanair recently scrapping printed boarding passes to cut costs and accelerate boarding for its 206 million passengers.

The airline’s move, which mirrored the Kenyan utilities’ argument for efficiency, has since provoked criticism over accessibility for older travellers or those without smartphones, highlighting a familiar tension between convenience and inclusion.

Consumer advocates warn that Kenyan utilities face similar risks if digital systems entirely replace physical channels without adequate safeguards for the digitally marginalised.

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