Kenya Power has suspended all 59 procurement and supply chain heads to pave way for a forensic audit to identify areas of possible revenue leakages.
The company has appointed a team in an acting capacity to ensure business continuity.
In a late weekday statement, the facility distributor aforementioned the goal of the rhetorical audit, which is able to be done on the procurance systems, stock, and staff, is to boost the hardiness of the company’s offer chain processes thus on anchor them on the principles useful for money, professionalism, and accountability.
“As a consequence, and in compliance with the assignment pressure recommendations, the pinnacle management of the deliver chain department comprising fifty-nine participants of the workforce has been suspended with immediate effect to pave manner for the forensic audit, ‘the electricity guy said.
This comes barely a month after President Uhuru Kenyatta formed a task force to implement findings of the team selected in March to review Power Purchase Agreements between independent power producers and Kenya.
This aims at addressing the cost of electricity, as well as streamlining and strengthening the business, and the sector.
Radical cleanup of the listed power distributor’s procurement and supply chain division is one of the recommendations by the task force led by John Ngumi.
In 2020, Kenya Power suffered Sh15.99 billion worth of system losses beyond what it is allowed to recover from consumers in the year ended June 2020.
The firm’s system losses rose 23.46 percent in the period, well beyond the 14.9 percent that the regulator had allowed it to pass on to customers’ bills in 12 months.
Besides, the task force also wants Kenya Power to lower the cost of purchasing power from Independent Power Producers (IPPs) with the aim of securing the sector’s sustainability.
Last week, the firm bounced back to profitability, reporting Sh1.5 billion in net earnings for the year ended June 30 compared to a Sh939 million loss last year.
The firm’s profit before tax stood at Sh8.2 billion for the period under review, representing a 216 percent YoY growth compared to a loss before tax of Sh7.04 billion.
The electricity company has attributed the strong performance to a boom in income and revenue, in addition to a double-digit discount in fees and expenses.
