Home NEWS Auditor General Nancy Gathungu Releases Report Exposing Trouble In Kenya Power 

Auditor General Nancy Gathungu Releases Report Exposing Trouble In Kenya Power 

0
Auditor General Nancy Gathungu Releases Report Exposing Trouble In Kenya Power 

Auditor General Nancy Gathungu Releases Report Exposing Trouble In Kenya Power

 

 

Kenya Power is under scrutiny as an audit report unveils that thousands of customers, having paid a total of Sh12 billion for electricity connections, remain in the dark.

According to the audit report, some individuals have been waiting for up to 11 years despite fulfilling the required fees.

The report indicates that approximately 8,506 projects worth Sh14.3 billion are lagging behind their execution schedules, with delays ranging from three to 13 years. Kenya Power’s Customer Service Charter outlines a connection window between seven and 28 days, depending on the type.

However, the audit reveals that the company has neglected this guideline.in her report, auditor General Nancy Gathungu criticized Kenya Power for holding customer electricity connection fees amounting to Sh12,079,656,000.

https://www.the-star.co.ke/news/2023-12-15-exposed-the-trouble-with-kenya-power/

Some projects, paid for 11 years ago, have not commenced. The delayed connections not only affect customers but also impact the company’s revenue.

The audit report sheds light on irregularities in Kenya Power’s management, including payments to ‘ghost’ suppliers exceeding Sh488 million without proper documentation. Additionally, former CEO Bernard Ngugi received Sh26,820,648 as a final exit payment after his abrupt resignation in 2021.

Gathungu highlighted concerns about Kenya Power’s capability to prudently manage power losses, electricity connections, and pass-through costs. The report revealed a lack of coordination in projects, leading to duplicated, delayed, or abandoned endeavors, causing avoidable additional losses.

The company also faces accusations of irregularly charging customers for excess power purchased from sources. The report indicates a loss of 3,056 units (23%) in the year under review, raising questions about the recovery of deemed losses approved by the Energy and Petroleum Regulatory Authority (EPRA).

Kenya Power’s exposure to Sh23 billion foreign exchange losses, despite financial challenges with a loss of Sh4.4 billion and negative working capital of Sh51 billion, adds to the concerns. The report calls for regulations to ensure renewable energy sources include stabilisation mechanisms in contracting agreements.

LEAVE A REPLY

Please enter your comment!
Please enter your name here