Auditor General Faults Kenya Power Board Over Delayed Appointment of New MD

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Kenya Power technicians on site PHOTO/Courtesy

The board of Kenya Power is on the spot again over the delayed appointment of a new Managing Director following Bernard Ngugi’s exit in August 2021.

In an audit of the company, the Auditor General questioned the board’s failure to install a new Chief Executive Officer (CEO) despite the completion of the recruitment process.

The Auditor General noted that the board was yet to explain why an appointment of the MD was yet to be done.

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“The consultant (Deloitte Consulting) in a letter dated May 6 indicated that it had concluded the recruitment process and presented the results of screening, final interview and recommended candidates for consideration to the Chairperson of the Board of Directors. The consultant was paid full contract price of KSh 2.9 million

“However, no documentary evidence including reports of the consultant, evaluation results, recommendations of the consultant and Board minutes and resolutions on the matter were not provided on why an appointment of acting Managing Director was yet to be done,” read the audit report.

The Auditor General termed the funds used in the recruitment process as wasteful since the position is yet to occupied.

The officer of the AG also asked the management to provide required documents and information for confirmation on the same.

The board was also put on the spot over other irregularities including a KSh 9.98 billion expenditure during the 2021-2022 financial year without approvals from the National Treasury.

“There was no evidence that management has sought approval of the National Treasury for the supplementary budget as provided in the law,” the report added.

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Other irregularities include gender inequality, irregular recruitment, irregular promotion, irregular procurement of goods and services, as well as non-compliance with guidelines on notice of board meetings.

Elsewhere, in August, electricity consumption fell as users began feeling the pinch of higher energy prices on discontinued subsidies.

According to data from the Energy and Petroleum Regulatory Authority (Epra), power use declined to 1.099 billion kilowatt-hours (kWh) in September from 1.11 billion units that were consumed in August.

The decline was attributed to increase in power prices which were increased for the first time in 10 months.

“Total units generated and purchased (G) including hydros, excluding exports in September 2022 (was) 1,099,340,544kWh,” said Epra Director-General Daniel Kiptoo in a gazette notice.

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