Vendors want state to end Kenya Power monopoly on smart meters

Independent electricity vendors now want the government to end the monopoly of smart meters buying by Kenya Power.

Members of the Africa Smart Metres Association Secretary General James Ngomeli told Senate Energy Committee in Nairobi Tuesday that the monopoly of meter buying by KPLC should be stopped and the money instead used to drive the Smart Grid solutions.

Ngomeli said that decentralisation of the smart metering connectivity will be enhanced by registering various players in the market and establish the framework having more customers connected faster as the waiting period for metering in the energy sector is three months.

“The sub metering sector needs to have clear policy guidelines that are focused on the customer needs, there needs to be training of smart metering in technical institutes and partnerships with universities, stakeholders engagement and discussions with Ministries of Energy, Water and Trade,” said Ngomeli.

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He told the committee chaired by Nyeri Senator Wahome Wamatinga that currently, less than 10 per cent of the smart meters used in Kenya are produced through local manufacturing, terming the figure lower than expected.

Ngomeli argued that the prevailing scenario favors assembly plants, where parts are imported and kits assembled locally, however, he expressed confidence that this figure could increase to 60 per cent if a compelling business is established, similar to what was achieved with laptop assembly plants.

He pointed out that Smart Meter technology integrates several advanced components to deliver precise power metering, secure data transmission and remote management and that at its core, metrology technology measures voltage, current, and power using voltage dividers, shunt resistors, and micro controllers with advanced power calculation algorithms.

“The physical design is developed through mould technology, while data security is ensured via encrypted storage, authenticated firmware, and tamper detection circuits, smart meters incorporate telecommunication technologies like cellular radios, RF mesh, WiFi, and PLC for reliable data transmission and are built with rugged, weatherproof enclosures to withstand harsh outdoor conditions,” said Ngomeli.

The Association Chairman Charles Kaloki said that the local manufacturers are  facing the challenge of not having smart meters manufacturing standards approved by the Electricity and Petroleum Regulatory Authority.

Kaloki said there was need for a framework arrangement with big off takers like KPLC to ensure certainty and to drive investment since the drive of tendering is not sustainable to drive investment and also the need for universities and research institution like Kenya Power to drive research to ensure local components are used.

The Chairman said that they are faced with counterfeit and tax evasion and customers procure substandard meters branded locally manufactured.

“There is need for a legal framework to discourage reverse engineering, counterfeit and enforcement of Buy Kenya Make Kenya, also huge investment is required to assemble smart meters while the financial markets cost is way above any competition,” he said.

He said that currently there are around four assembly plants in operation with Artificial Intelligence rapidly being integrated to lower production costs and enhance efficiency. However, the market remains highly competitive and somewhat secretive.

Kaloki told the Senate Committee that this is primarily due to the intense focus on securing Kenya Power tenders. Price wars dominate the landscape, and many players prefer to keep their developments under wraps to maintain a competitive edge.

He said that this secrecy is further heightened by the fact that Kenya Power is often the sole buyer, leading to cutthroat competition with some of their members, understandably preferring to remain anonymous given the sensitive nature of their business strategies.

“The result is an industry where innovation is progressing, but largely behind closed doors, making it difficult to foster open collaboration or broader market participation,” said Kaloki.

He said that Kenya Power is conducting research, but the real driver for the growth of metering solutions in Africa lies in patriotism and local ownership and that an enabling environment, allowing local businesses and manufacturers to lead the production of meters should be created.

Kaloki said that universities can play a pivotal role in this effort just as they have partnered in producing laptops, transitioning to smart meter production is a natural progression of electrical, mechanical and business innovation.

He submitted that Industry and university cooperation is essential to drive this production forward, however, there is a significant gap in research funding for metering solutions and that they are currently conducting a survey to assess the extent of research in this field.

“Preliminary insights suggest that very little is being done in terms of prototyping and innovation in metering technology, supporting research and fostering collaboration between universities and industries will be key to developing locally-driven, sustainable metering solutions,” he said.

Kaloki pointed out that currently there are no specific policies or regulatory frameworks in place to support the local smart metering sector, which has raised concerns among their members and that as an association they aim to advocate for more structured policies.

He told the Senate that they would like to contribute by sharing insights from other countries, such as South Africa, which have successfully promoted local smart meter manufacturing while pointing out that Regulations and guidelines for metering from EPRA are still very vague.

A key issue is that many manufacturers are also handling retail and distribution, limiting opportunities for other players in the supply chain. This lack of diversity, coupled with the absence of smart metering standards, has left the market vulnerable.

“We are witnessing an influx of imported smart meters for energy, water, and gas, many of which are of questionable quality, potentially flooding the market with substandard products, the net metering rules are just not an enabler but do not dig deep in creating an environment for metering solutions and development,” said Kaloki.

He pointed out that without proper regulations, there is a risk that the public could be misled and the integrity of local metering solutions compromised calling for policies that ensure quality control and protect local industries from unfair competition.