Thursday, 23 June 2011

Why do we pay?

As I watched the re-branding of KPLC to Kenya power I asked myself a question which I've asked before

Why do we pay them to get connections and transformers closer to us? i.e the Umeme pamoja scheme. Where do customers pay for a service to be brought to them? I mean their business is selling power. Do safaricom and the other networks ask us to  pa to set up base stations, I dunno the exact cost but I'm sure it's much more than the cost of a transformer and 2km of power lines! Isn't a business supposed to spend money on infrastructure? The mobile networks spend billions every year in expansion. Kenya Airways spends billions to acquire new aircraft to fill with passengers etc.

I think this is just an antiquated business model back from the parastatal days. Hey even their sister company Kengen does not ask us to pay for new generators... The only thing we should pay for is customer premises equipment like meters

Just thinking...

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