In this interview, we continue our discussion with Daniel Bungey, Future Energy Leader at the World Energy Council, focusing on the funding mechanisms, implementation challenges, and key lessons shaping Kenya’s smart metering transition. With experience spanning Africa, the Middle East, Latin America, and Asia, Bunge shares his perspective on how development financing, regulatory clarity, and technology choices can accelerate Kenya’s digital energy transformation.

Is funding secured for existing or planned smart metering projects — through government budgets, public-private partnerships, or support from international institutions such as the World Bank and AfDB?

Funding mechanisms for smart metering closely reflect the structure of Kenya’s energy sector. On one side are private mini-grid developers who integrate smart meters by default as part of their business model for revenue protection and operational sustainability. Their projects are typically financed through a blend of private equity, concessional funding, and debt, allowing for agility and innovation in deployment.

On the other side is Kenya Power, the majority state-owned utility. For them, smart metering projects are mainly funded through internal budgets. International development institutions like the World Bank and African Development Bank (AfDB) also contribute indirectly through larger electrification programs, where smart metering is embedded as one component of broader grid modernization.

There are currently no dedicated public-private partnerships focused solely on smart metering, but this remains a strong area of opportunity. Creating structured financing mechanisms would help expand coverage beyond large commercial and industrial users to include residential consumers. This would also reduce the financial pressure on Kenya Power’s balance sheet and free up capital for critical investments in grid reinforcement, flexibility, and renewable energy integration.

If institutions like the European Bank for Reconstruction and Development (EBRD) are looking to expand into sub-Saharan Africa, Kenya offers an ideal entry point. Supporting smart metering and grid modernization would align perfectly with their mandate to strengthen infrastructure and sustainability. These partnerships could complement existing World Bank and AfDB programs while enabling broader inclusion of small and medium consumers in the smart metering rollout.

What are the key challenges in implementing smart meters in Kenya — technical, infrastructural, regulatory, or financial — and how can they be addressed?

The main challenges cut across financial, regulatory, and technical dimensions. The absence of a coherent national smart metering roadmap is one of the biggest gaps. Kenya has numerous ongoing digitalization and modernization initiatives, from electrification programs to the development of digital superhighways, but they operate largely in isolation. A unified national strategy would allow these efforts to converge under a shared vision and funding structure.

This roadmap should emphasize the balance between people, processes, and technology. Successful deployment of smart metering requires not only robust systems but also strong institutional capacity. Training and reskilling programs are vital to ensure that existing engineers, technicians, and field staff can adapt to digital operations. It is equally important to attract new talent with data science and analytical expertise to interpret and manage large volumes of metering data.

Capacity building within utilities must go hand in hand with a financing strategy that leverages development partnerships. Initiatives like the World Bank’s Mission 300, aimed at connecting 300 million people across Africa, present opportunities to embed smart metering within broader electrification and modernization projects. Smart metering should be recognized as a foundational element of grid modernization essential for both operational efficiency and financial sustainability.

Overall, Kenya’s progress has been encouraging but fragmented. Aligning regulation, funding, and capacity development through a unified roadmap would enable faster, more sustainable growth of digital energy infrastructure.

Technology choice remains one of the most complex aspects of smart metering implementation. Currently, GPRS is the dominant communication technology for high-consumption customers. It performs well where reliable broadband networks exist, making it economically viable for industrial and commercial users. However, when scaling to residential customers and rural areas, its business case becomes weaker due to inconsistent coverage and higher maintenance costs.

Alternative solutions such as Power Line Communication (PLC) and RF mesh networks offer lower-cost options for last-mile connectivity, though they face technical challenges related to grid quality and electrical noise from renewable energy inverters. Continued investment in research and innovation is necessary to strengthen these technologies for Kenya’s grid environment.

Looking ahead, the country’s expanding fiber-optic network, part of its national digital superhighway, could play a major role in reducing long-term communication costs. A hybrid model using fiber for data concentrators and PLC or RF mesh for end-user connections could balance cost, scalability, and reliability. Coordination between the energy and ICT sectors will be critical to making this model viable and embedding it within the broader national digitalization agenda.

What is the most important lesson you’ve learned throughout your career?

Having worked in the fields of digitalization and energy technology, I’ve learned that innovation is driven as much by people and processes as by technology itself. The success of any digital transformation depends on how well it accounts for the people who use and operate these systems.

In Africa, prepayment metering remains a widespread and effective model for both utilities and customers. It protects revenue and allows consumers to manage their spending conveniently. Therefore, innovation in smart metering must build on, not replace, these realities.

Equally important are the people within the utilities, the engineers, meter readers, and operations teams who ensure daily reliability. Their perspectives, skills, and job security must be part of any modernization effort. Failing to include them can lead to resistance or implementation gaps.

The most valuable lesson I’ve learned is to stay people-centric: understand user needs, empower operators, and ensure that technology serves real human and institutional goals. Sustainable innovation happens when people, processes, and technology evolve together.

Kenya’s smart metering progress is constrained less by technology and more by the lack of a unified national strategy and financing framework. Coordinating funding, regulation, and institutional capacity under one roadmap is essential to achieve scale and long-term sustainability.

Building human and institutional capacity is just as important as deploying advanced technology. Without skilled personnel and structured training, even well-funded projects risk fragmentation and limited impact.

The most important insight from Kenya’s experience is that digital transformation must remain people-centered. Sustainable innovation occurs when technology, processes, and human capabilities evolve together toward shared operational and social goals.

How can Kenya ensure that capacity building and workforce development keep pace with the technological advancements in smart metering?