President William Ruto on Tuesday, May 16, announced that he was going to overhaul the Kenya Power board a day after dissolving Kenya Medical Supplies Authority (KEMSA) board.
This was resolved during the administration’s fourth cabinet meeting held at State House, Nairobi.
A statement from the Office of the President indicated that the move was informed by a lack of profitability in the electric power distribution company.
“The Cabinet has approved restructuring Kenya Power's balance sheet, aiming to restore profitability.
“The new plan focuses on enhancing the company's financial sustainability, particularly by addressing loan balances and the liquidity gap,” the statement read in part.
The cabinet stated that in line with the Kenya Kwanza Bottom-Up Economic Transformation Agenda, the composition of Kenya Power's Board would be adjusted to reflect its shareholding.
Reiterating his statement while dissolving the KEMSA board, Ruto revealed that his government would not tolerate graft.
“President Ruto emphasised integrity and vigilance within Government ministries and departments.
“He issued a stern warning against corruption and wastage in the provision of services to the people,” the statement stated further.
The President’s statement came at a time when Senate was seeking to change the law on Independent Power Producers (IPPs).
On Tuesday, April 18, the Senate Standing Committee on Energy revealed that IPPs were charging exorbitant prices for electricity sold to Kenya Power.
Nyeri Senator Wahome Wamatinga noted that the government would end its contractual agreement with IPPs.
“We have found out that the contracts were skewed in favour of IPPs and we are relooking on how to end the deal even if it means paying penalties,” Wamatinga revealed.
