Kenya Power has suspended the top leadership of the Supply Chain Division comprising 59 members of staff over fraud.
The company, in a statement, said the development is as a result of recommendations by the Presidential Taskforce on the Review of Power Purchase Agreements formed in March.
“In the interim, the Company has appointed a team in an acting capacity to ensure business continuity,” the management said.
The task force in its report has recommended 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.
“The Taskforce Report 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,” said Kenya Power.
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 task force also recommended 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.
