Kenya Power is eyeing to grow its non-core revenue to supplement income from electricity sales, as the Company seeks to lay a firm foundation for a sustainable business in the next century of service to the Kenyan people.
“Over the next five years, we are targeting to grow non-core revenue to at least 3% of the total revenue through investments in fiber, general consultancy at both local and regional levels, and optimization of our property through leasing,” said Kenya Power’s Managing Director, Dr. (Eng.) Joseph Siror.
He was speaking today during the 2023 graduation ceremony of the Institute of Energy Studies and Research (IESR). Presently, non-core revenue accounts for about 0.7% of the Company’s total revenue.
IESR is a subsidiary of Kenya Power that is mandated to champion the Company’s revenue diversification agenda. Apart from academia, IESR also undertakes consultancy and research business in various areas within the energy value chain.
It also hosts the Company’s electricity meters laboratory, the second such facility within the Sub-Saharan region after South Africa.
In addition to testing Company meters, the laboratory does testing and calibration of meters and equipment for other entities at a cost.
“Our focus is to ensure that IESR becomes the Centre of Excellence in Africa, leveraging on Kenya Power as a market leader in the region.
“Like other utilities that have embraced revenue diversification, through IESR, Kenya Power will continue to explore avenues to tap into investments in various areas including research, capacity building and developing the right skills to serve the region’s needs,” said Dr. (Eng.) Siror.
As part of its drive to grow revenue from the fiber business, IESR is currently installing smart poles in partnership with Safaricom at six locations within Nairobi. Smart poles are special utility poles that support the provision of high-speed internet connectivity.
During today’s graduation ceremony, 592 graduates received diplomas and certificates in electrical engineering, petroleum geoscience, mechanical engineering and ICT.
On the academic front, IESR focuses on offering technical and technological diploma and certificate courses in the four disciplines.
Energy and Petroleum, Cabinet Secretary, Davis Chirchir said: “I applaud the Institute of Energy Studies and Research (IESR) for their commitment to empowering the next generation of energy professionals.
“As we transition towards a sustainable energy future, the skills and knowledge acquired by these graduands will be instrumental in driving the transformation of our energy sector.
“We encourage energy sector utilities to seize the opportunity and provide employment opportunities for these skilled graduates, contributing to the growth and development of our energy industry.”
In partnership with other institutions and development partners, IESR also offers professional courses targeting local and international utilities.
In the past, IESR has trained professionals from utilities in Uganda, South Sudan, Somalia and Djibouti.