Kenya Power alters top managers’ work terms in reform bid
What you need to know:
- Under a new organisation structure announced yesterday, the lender has created a commercial directorate department that will be tasked with responding to customer issues, seen as the agency’s response to customers’ complaints about persistent power outages and inflated power bills.
- The power supplier’s senior management currently enjoy permanent and pensionable terms.
- The changes are aimed at tightening corporate governance and improving the agency’s response to customers in line with new regulatory changes that prescribe penalties for poor service delivery.
Kenya Power’s #ticker:KPLC senior management staff will work on three-year performance-based contracts in changes aimed at improving accountability at the scandal-rocked electricity distributor.
Under a new organisation structure announced yesterday, the lender has created a commercial directorate department that will be tasked with responding to customer issues, seen as the agency’s response to customers’ complaints about persistent power outages and inflated power bills.
The power supplier’s senior management currently enjoy permanent and pensionable terms.
“The heads of the directorates will report directly to the Managing Director and CEO,” said Kenya Power Monday in a statement.
Customers will be segmented into large power users, small commercial users, and domestic and emerging users.
The changes are aimed at tightening corporate governance and improving the agency’s response to customers in line with new regulatory changes that prescribe penalties for poor service delivery.
Managing director Ken Tarus Monday confirmed that 18 Kenya Power staff have been sacked after an internal audit revealed they had formed phony companies to do business with the company.
Up to 350 contractors have been blacklisted following the audit which revealed the irregular award of labour and transport tenders.
The changes will also see the creation of Energy Supply Management, Commercial, Operations, Corporate Services and Finance directorates that will directly report to the CEO.
It also led to the reduction of administrative regions from ten to seven, in a bid to cut on costs and improve on efficiency.
The re-structuring began last year and will be tested until 2023, when it will be reviewed.
Mr Tarus said that changes will make staff more effective as the company tries to save its public image that has come under scrutiny over corruption, inflated power bills and persistent power outages in most parts of the country.
According to the MD, about 300 out of the total 500 applicants illegally won the tenders and majority were associated with the sacked employees.
The office of the Director of Public Prosecutions has since ordered investigations into the matter.
