Owners of companies supplying goods and services to the troubled Kenya Power will have to be revealed as part of the reforms to address the growing cases of graft at the government agency.
As part of the reform rules proposed, Kenya Power suppliers paid over Ksh1 million per month or Ksh12 million per annum will have to file the identities of their true owners.
In addition, the suppliers will have to authorise Nairobi Securities Exchange (NSE) to disclose their owners to other market regulators.
“All suppliers and persons selling and or supplying electric power or other goods and services to the company in excess of an aggregate of Ksh1 million per month or Ksh12 million annually shall disclose to the company the ultimate beneficial owner of the supplier and or electric power,” read part of the proposed regulations.
The decision will help Kenya Power in its crackdown on graft by exposing insider dealings as well as conflict of interests.
Additionally, the reforms are aimed at exposing some parties engaging in fraudulent transactions with other companies.
Already, the Kenya Power has suspended 59 top leaders to pave way for a forensic audit.
A new interim team was named and assumed full responsibilities until the forensic audit period lapses.
“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,” Kenya Power detailed in an earlier statement.
The move aims at revamping the entire agency and bringing it back to profitability.
A taskforce was constituted by President Uhuru Kenyatta to review the utility of power purchase and the business model adapted by Kenya Power after several reports indicated massive losses through pilferage.
“The 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."
