The management of Kenya Power has suspended 59 top officers from its supply chain division.
The suspension is expected to pave the way for the forensic audit of the utility companyโs procurement systems.
โThe goal of the forensic audit, which will be done on the procurement systems, stock and staff is to enhance the robustness of the companyโs supply chain processes so as to anchor them on the principles of value for money, professionalism and accountability,โ Kenya Power said in a statement on Thursday following an earlier board meeting.
Subsequent to the suspension, Kenya Power has appointed an interim procurement lead team to ensure business continuity as the audit gets underway.
The probe on the companyโs procurement systems is part of recommendations from a Presidential appointed Taskforce on the review of the utilityโs power purchase agreements.
With the supply chain division sitting at the heart of all procurement processes, this means staffers and heads at the division are the first in line to face the transparency litmus test.
โThe taskforce 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 implementation of remedial measures as part of the business reform and restructuring process,โ the company added.
Kenya Power dealings with independent power producers (IPPs) have been partly fingered for the firmโs runaway costs which plunged the company into loss making territory in the financial year ended June 2020.
Nevertheless, the management of the company has begun effecting key changes to review the firmโs cost base which allowed Kenya Power to squeeze through and post a Ksh.1.5 billion net profit for the year ended on June 30.
The reforms included the restructure of loan overdraft facilities into term loans which saw the company save in excess of Ksh.3 billion on interest payments and debt redemption in the period
