Former Kenya Power MD Ben Chumo Accused Of Swindling Business Partner Out Of Sh.3.9 Million

Former Kenya Power Managing Director Dr. Ben Kipsang Chumo stands accused of exploiting his Eagle HR Consultants business partner.

The business partner who sought anonymity said the two met in Tanzania and later agreed to operationalize the already registered consultancy firm. They signed a profit share agreement in September 2017.

Kahawa Tungu has learnt that for the 9 months (September 2017 – June 2018) that they have been in business, the company has made more than Sh.21 million but no salaries have been paid.

Part of the deal was that the parties involved will be entitled to a 33.5% of the gross income after meeting overheads and staff expenses.

The business partner says that the former MD owes him a whooping Sh.3.9 million, accumulated from September last year.

It has been said that the partner has tried to get their money money back, but calls, emails have gone unanswered. They, on 28 May served Dr Chumo with a demand letter requiring him to pay the aforementioned amount of money in full failure to which they would institute legal proceedings seven days from the date of receipt of the letter.

The consultancy received Sh.13 million from United Millers Limited for a contract starting 3, April to 30 June, 2018 for

Similarly, the consultancy received Sh.596,569 from Icon Hotels Group Africa, Mahindra & Mahindra Ltd paid Sh.69,600 for recruitment services, the county government of Busia also made a Sh.1.8 million payment.

Stima Sacco also paid Sh.75,400 for ‘Managing for results program in Nairobi from 24 – 27 April 2018, and Sh.400,200 for electronic records management. Liquid Telecom made a Sh91,640 for background checks for one candidate.

Read: Patrick Ataro is Earning Two Salaries, as MD of a Parastatal and CEC in Trans-Nzoia County

The monies were deposited into an Equity Bank account; 1400274191489.

Before leaving Kenya Power, the board led by former Speaker Kenneth Marende had sought to extend his term even after attaining the mandatory retirement age.

The board then denied the claims after activist Okiya Omtatah had the renewal of his term blocked by court.

Dr Chumo was in 2017 appointed Egerton University council chair by then Education CS Fred Matiang’i.

Do you have a story you want told? Do you know of a sensitive story you would like us to get our hands on? Email your news TIPS to Editor@kahawatungu.com