Three Kenya Power Board members resign amid restructuring - Business Daily

Three Kenya Power Board members resign amid restructuring – Business Daily

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Three Kenya Power Board members resign amid restructuring


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The company said on Tuesday that three board members of the state-owned electricity distribution company, Kenya Power, had resigned immediately, and it was the last to leave amid a restructuring at the company.

Kenya Power said in a newspaper notice that Elizabeth Rojo, Abdul Razak Ali, Caroline Kitoni and Yaki have resigned.

The trio were part of a new team appointed two years ago to lead the Kenya Energy Board and tasked with transforming efforts at the ailing facility.

Rojo was appointed oil executive in April of this year to the board of the Kenya National Oil Corporation (KNOC), which is also undergoing another transformation.

Previously she served on President Uhuru Kenyatta’s panel selected to review Kenya Power’s purchase agreements.

The board’s exit comes days after Kenya Power appointed a new acting managing director, Jeffrey Waswa Muli, to replace Rosemary Odor, who has been acting in the same capacity since August 2021.

The company said in the middle of this month that Mr. Molly will take over Ms. Oduor’s duties once she goes on annual leave.

Ms Odor took over from Bernard Ngogi, who also resigned last year in surprising changes to the company.

Read: Power Kenya Revolving Doors: Replacing an Acting CEO

Ngogi was the fourth CEO in four years to walk out of the company amid boardroom fallout that came months after a court rejected a petition to dismiss him over previous purchase transactions.

It has come under pressure from the board of directors and shareholders over its turnaround plans amid a string of losses at the facility. He resigned barely two years after his three-year appointment.

Mr. Ngugi, who has worked at the company for more than 32 years, took over the role from Jared Otheno, who had been acting CEO since July 2018 following the exit of former CEO Ken Tarros, who was charged in court with conspiracy to commit economic crime and abuse of office.

Mr. Tarros was commissioned along with his predecessor, Ben Chumo, and a number of other senior managers of the power distribution company. They have denied all charges against them.

Kenya Power, which is in the midst of a turnaround, is looking to cut jobs as part of efforts to manage a simple operation and offset revenue losses that followed a January electricity price cut of up to 15 per cent.

The government is also pushing to renegotiate fixed fees in power contracts the monopoly signed with power generating companies down.

Kenya Power’s net profit for the six months to December jumped more than 27 times to Sh3.81 billion from Sh138 million in a similar period a year ago on the back of higher electricity sales and lower operating costs.

Kenya Power is one of the beneficiaries of a NIS 86.95 billion government loan obtained from international lenders in an effort to support the transformation of the energy utility.

Treasury documents before Parliament earlier this month show that Kenya has benefited from Sh60.29 billion ($520 million) from the International Development Agency (IDA) and Sh26.667 billion ($230 million) from the International Bank for Reconstruction and Development (IBRD) on 18 March. .

However, the Treasury did not disclose how much Kenya Power would receive, saying the money would be used to support the facility’s finances.

READ: Kenya Power has eased its offer of compensation for power outages

Also read: Kenya’s energy renewal gets boost from state loan of $87 billion

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