More than 2,600 employees at the Kenya Power and Lighting Company (KPLC) took home less than a third of their basic salaries, violating the Employment Act, even as millions of Kenyans continue to endure skyrocketing power costs and unreliable supply.
Parliament revealed on October 14 in a session at Parliament Buildings, where the National Assembly’s Public Investments Committee on Commercial Affairs and Energy (PIC-CAE) grilled top KPLC management over audit findings in the utility firm’s financial records for the year ending June 2022.
“In the human resource department, the audit revealed unapproved secondments of 36 staff from ministries and agencies, and delays in appointing a substantive Managing Director despite the completion of recruitment,” the statement read.
“Additionally, more than 2,600 employees were found to have taken home less than a third of their basic pay, in violation of the Employment Act (2007).”
Chaired by Pokot South MP David Pkosing, the committee painted a bleak picture of KPLC’s financial health, citing six consecutive years of negative working capital, with liabilities exceeding assets by Ksh55.7 billion.
Why Kenyans are Burdened
The Auditor-General warned that the trend poses an existential threat to the company’s viability.
KPLC Chief Executive Officer Dr. Joseph Siror, appearing before the Committee, defended the company’s operations but acknowledged the challenges.
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He cited ongoing reforms, including tighter procurement oversight and reconciliation of accounts with agencies like Kengen, KETRACO, and REREC.
MPs expressed deep frustration over what they called a “pattern of mismanagement,” particularly the soaring costs of power from Independent Power Producers (IPPs).
While Kengen supplied 63% of the electricity at a cost of Ksh38.9 billion, IPPs supplied 37% at a Ksh56.2 billion, nearly three times the per-unit cost.
“This burden is being passed on to the common mwananchi,” said Hon. Pkosing. “We want to know who approved these expensive contracts. Kenyans are paying for the inefficiencies and questionable deals.”
KPLC Procurement and Insurance Irregularity
Fuel costs had also jumped by 137% in the period under review.
Lawmakers questioned the direct hiring of generators for Mandera and Lodwar at Ksh185 million without open tendering, a clear procurement breach.
KPLC cited security concerns to justify the move.
Further audit findings flagged irregular insurance contracts and consultancy services that exceeded budget and sidestepped public procurement laws.
The HR department was also found to have seconded 36 employees from ministries and agencies without proper approvals and delayed the appointment of a substantive managing director.
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“This is a scandal,” said Hon. Duncan Mathenge (Nyeri Town MP). “The board should refund any irregular payments they received. If this isn’t corrected, we will recommend personal liability.”
Illegals Meetings
Mwangi Kiunjuri (Laikipia East MP) also blasted the board for holding 62 illegal meetings, calling it a “shocking display of disregard for corporate governance.”
“It is unacceptable that such a strategic national utility is run like a personal enterprise. There’s a serious conflict of interest here,” he said.
Dr. Siror requested additional time to submit documentation addressing the committee’s concerns. But MPs signaled they would not wait long.
Pkosing announced the Committee will summon Energy Cabinet Secretary Opiyo Wandayi and Treasury Cabinet Secretary John Mbadi to respond to audit queries touching on policy failures and financial oversight.
“The inefficiency and policy loopholes cannot continue. Parliament will not stand by as Kenyans are punished through inflated electricity bills,” Pkosing said.
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