A Kenya Power staff repairing electricity along Ngong Road Nairobi on June 13, 2020. The utility is facing severe losses. PHOTO | DENNIS ONSONGO | NMG Removal of the five directors, who handed in their resignations this past week, paves the way for Treasury to appoint a team to spearhead the rescue of the electricity distributor, which has issued a profit warnings for three years in a row.
As Kenya Power sank deeper into losses putting at risk the country’s energy security, the political appointees became a big liability prompting the majority shareholder, Treasury, to step in.
The Kenya Power Board slots currently consist of the chairman, two government representatives and five independent directors.
All independent board members of the troubled Kenya Power were ordered to resign in a purge orchestrated by the Treasury, The EastAfrican has learnt.
Removal of the five directors, who handed in their resignations this past week, paves the way for Treasury to appoint a team to spearhead the rescue of the electricity distributor, which has issued a profit warnings for three years in a row.
This past week, Kenya Power chairman Mahboub Maalim and board members representing the ministries of Energy and Treasury held crisis meetings.
“I believe the chair and board members representing ministries of Energy and Treasury are meeting today (July 16) to plan for the AGM where reconstituting the new board should be on the agenda,” Treasury Cabinet Secretary Ukur Yatani told The EastAfrican , but declined to comment on whether the resignation of the current directors came as a surprise to him.
Mr Maalim and two ministry representatives were the only directors left after the resignation of Adil Khawaja, Kairo Thuo, Wilson Kimutahi Mugung’ei, Brenda Kokoi and Zipporah Kering.
“The board had weaknesses as some people who were politically appointed did not understand operations of the utility company,” one of the outgoing board members told The EastAfrican in confidence.
Liabilities
As Kenya Power sank deeper into losses putting at risk the country’s energy security, the political appointees became a big liability prompting the majority shareholder, Treasury, to step in.The Kenyan government owns 50.09 percent of the shares of the Nairobi Securities Exchange-listed electricity distributor.Corruption and mismanagement, which has seen more than 10 former senior managers of the company charged in court, has accelerated the utility’s decline.“The shareholder (Treasury) wanted to totally re-organise the board, only that it wasn’t clear on how it is was going […]
