Kenya Power Could have spent at least Ksh9.8 billion on deadstock including transformers, cables, and metres, an audit has revealed.
According to Energy Principal Secretary Gordon Kihalangwa, the sole power distributor has been keeping the equipment for over five years.
“We have realised that Kenya Power has a dead stock of Ksh9.8 billion currently,” he told the National Assembly’s Public Accounts Committee (PAC).
Kihalangwa however did not provide a breakdown of the dead stock in question.
Read: Kenya Power Loses Its Autonomy As Gov’t Cracks Whip
This comes days after the government ordered Kenya Power to immediately suspend ongoing and pending negotiations with independent power producers.
The government had ordered Kenya Power to renegotiate its deals with the 22 independent power producers(IPPs) in a bid to lower power costs.
Interior CS Fred Matiang’i said a review of existing agreements will be prioritized in a drive to lower cost of electricity in the country.
However, Kihalangwa said that only two IPPs have approached Kenya Power ready to renegotiate their contracts with Kenya Power.
“Two of the IPPs have come forward to say they want to negotiate. We want to fix the problems at Kenya Power,” said Kihalangwa.
Read: Relief For Kenyans As Kenya Power Withdraws Bid To Raise Tariffs By 20PC
Kenya Power recorded a net loss of Ksh2.98 billion in the financial year ended June 2020, the first loss in 17 years.
An inter-ministerial committee comprising of the Directorate of Criminal Investigations, the Central Bank’s Financial Reporting Centre, and the Assets Recovery Agency has been formed to probe Kenya Power’s supply and demand needs, and pricing policies.
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