Radical surgery at Kenya Power as 59 procurement officials suspended » Capital News

NAIROBI, Kenya Nov 4 – Kenya Power has embarked on a radical surgery and suspended 59 top officials in the Supply Chain Division.

A statement from the management said the decision was taken in line with a recent presidential Task Force report that ordered a review of Power Purchase Agreements so as to lower the high cost of power.

“As a consequence, and in compliance with the Taskforce recommendations, Kenya Power has, with immediate effect, suspended the top leadership of the Supply Chain Division comprising 59 members of staff to pave way for the forensic audit. In the interim, the Company has appointed a team in an acting capacity to ensure business continuity,” the statement said.

Last week, Energy Cabinet Secretary Monica Juma said reforms outlined in the task force report will be implemented fully, in line with the law in what is aimed at streamlining and strengthening the sector.

President Uhuru Kenyatta has assured that his government is committed to streamline the sector so as to lower power costs before Christmas.

He formed a Taskforce six months ago which presented its report to him last month with a raft of proposed measures that would result in reforms within Kenya Power and the entire energy sector, so as to catalyse a 33% reduction in the cost of the end user tariff by December 25.

Among the recommendations that were made by the Taskforce was a review of Power Purchase Agreements (PPAs) in order to lower the cost of purchasing power from Independent Power Producers (IPPs) with the aim of securing the sector’s sustainability.

The Taskforce Report further recommended reforms within the organisation and in particular, the Supply Chain Division, which will include undertaking a forensic audit to identify areas of possible leakages so as to facilitate the implementation of remedial measures as part of the business’ reform and restructuring process.

Thursday’s changes at the Kenya Power have already sent panic across the Energy Ministry and all its parastatals.