Gerald Kyalo. (geraldbway).
How a Ksh 400,000 Power Bill Crushed Retiree Paul Njuguna’s Multimillion Oil Plant Dream
From Thriving Enterprise to Grounded Operations: How an “Erroneous” Kenya Power Bill Devastated a Retiree’s Business and Local Community
Paul Njuguna, a retired technical manager from the Agricultural Development Corporation (ADC), once ran a promising refined oil processing venture, Elgon Pine, that was generating hope for local farmers and suppliers. At its peak, the plant processed up to 90 tonnes of canola, sunflower, and soya annually, with Njuguna aiming to scale operations to 300 tonnes, the capacity of his state-of-the-art pressing and refining machines.
Njuguna had invested Ksh 16 million into the business upon retirement, using it to purchase modern machinery. He also contracted 100 local farmers, who supplied raw materials to the plant, while also cultivating sunflower and canola on his own 10-acre farm. Beyond oil, Elgon Pine produced poultry feeds and soap, with by-products sold locally at Ksh 40–45 per kilo, benefiting both the business and the wider community.
The Power Bill That Changed Everything
For years, Njuguna’s monthly power bills averaged Ksh 30,000—manageable for a growing enterprise. But in August 2021, Kenya Power shocked him with an erroneous Ksh 400,000 bill. Believing it to be a mistake, he filed a complaint, expecting a swift resolution. Instead, Kenya Power claimed he had been underbilled for months and demanded payment.
When Njuguna refused, citing the abnormality of the charge, Kenya Power disconnected electricity to both his plant and home. He lodged a complaint with the Energy and Petroleum Regulatory Authority (EPRA), explaining that his residence had a separate connection from the plant. EPRA ruled in his favor, but the reconnection was never implemented, effectively halting his operations and dealing a fatal blow to the business.
The collapse of Elgon Pine not only devastated Njuguna’s entrepreneurial dream but also affected dozens of farmers, suppliers, and employees who depended on the enterprise. The incident raises critical questions about Kenya Power’s billing practices and whether there are sufficient protections to prevent the collapse of small and medium-sized ventures due to administrative errors or systemic oversight.
Elgon Pine’s story is a stark reminder of how a single administrative error can topple a multimillion-shilling business and ripple through a community that relies on it. It highlights the urgent need for regulatory safeguards and accountability to support local industries, especially those that empower farmers and create employment.
