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.
This follows recommendations made by the Presidential Taskforce on the Review of Power Purchase Agreements was formed by President Uhuru Kenyatta in March 2021.
The Taskforce was formed to address the cost of electricity, as well as streamline and strengthen the business, and the sector.
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The Taskforce presented its report to the President on September 29, 2021, containing a raft of proposed measures that would result in reforms within Kenya Power and the energy sector, so as to catalyse a 33 percent reduction in the cost of the end-user tariff by December 25, 2021.
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.
The goal of the forensic audit, which will be done on the procurement systems, stock and staff, is to enhance the robustness of the Company’s supply chain processes so as to anchor them on the principles of value for money, professionalism and accountability.
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