Kenya Power Suspends Entire Supply Chain Division Comprising 59 Employees to Allow Audit

Kenya Power Suspends Entire Supply Chain Division Comprising 59 Employees to Allow Audit

Kenya Power confirmed 59 staff will be temporarily relieved of their duties to pave way for a forensic audit

The company picked an interim procurement lead team to take charge of the division’s business operations as the expected audits gets underway

The company explained the exercise was part of the recommendations of the Presidential Taskforce on Review of Power Purchase Agreements

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An axe has fallen on Kenya Power and Lighting Company procurement team after the entire supply chain division staff were suspended. Kenya Power Operation and Maintenance team attending to customers’ issues. Photo: Kenya Power. Source: Facebook In a statement after a board meeting on Thursday, November 4, Kenya Power confirmed 59 staff will be temporarily relieved of their duties to pave way for a forensic audit. “ 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, ” the company stated. Interim team to take charge

Prior to the suspension, the lighting company had picked an interim procurement lead team to take charge of the division’s business operations as the expected audits gets underway.

The company explained the exercise was part of the recommendations of the Presidential Taskforce on Review of Power Purchase Agreements. " 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," Kenya Power said. The taskforce

The task force which was constituted in March 2021, was mandated to undertake a comprehensive review and analysis of the terms of all the power purchase agreements entered into by Kenya Power.

It was also expected to develop a suitable strategy for engagement with the Independent Power Producers (IPPs) and lenders in order to achieve relief for electricity consumers.

It forwarded its report to President Uhuru Kenyatta on Thursday, September 30.

In the report, the team found out there was a vast differential between KenGen and Independent Power Producer (IPP) tariffs and electricity dispatch allocations leading to irreconcilable projections as against demand. Taskforce recommendations The task force […]

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