Kenya Power halts bill payment at Posta

Kenya Power has temporarily suspended electricity bill payment at Postal Corporation of Kenya (PCK) outlets, affecting thousands of customers who prefer to use the agency to avoid long queues at the power distributor’s branches.

The utility’s management Thursday told the Business Daily that the suspension was informed by an ongoing renegotiation of contract terms between the two parties.

“We have suspended the collection agreement with PCK to pave way for renegotiation of contract terms. Please note that the contract is not terminated. We will resume once in agreement,” Kenya Power said in response to queries from the Business Daily. 

Posta is among firms that Kenya Power has entered into agreement with to accept payment for electricity. Others include telcos and banks.

The temporary termination of PCK’s agency contract comes a few months after Kenya Power terminated Uchumi as its agent, accusing the retailer of delaying remitting the cash and trading with the money without its consent.

Unlike the banks and telecommunication firms, PCK does not charge Kenya Power customers who pay their bills through its facilities.

The agency initiative is part of Posta overall diversification projects. Others include the cash subsidy programme for the elderly and orphans, renewing driving licences and stamp duty payment for land transactions.

SOURCE: BUSINESS DAILY