Ruto moves to overhaul Kenya Power after dissolving KEMSA board
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Ruto announces a move to restructure Kenya Power (KPLC) in a bid to make the utility company more profitable
Ruto announces a move to restructure Kenya Power (KPLC) in a bid to make the utility company more profitable.
Tuesday, May 16, one day after dissolving the Kenya Medical Supplies Authority (KEMSA) board, President William Ruto declared that he will revamp the Kenya Power board.
This was resolved during the administration’s fourth cabinet meeting held at State House, Nairobi.
According to a statement from the President’s Office, the decision was motivated by the electric power distribution company’s lack of profitability.
“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 emphasized 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).
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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.
The Cabinet also endorsed proposed amendments to the Water Act of 2016, which introduces Public Private Partnerships (PPPs) in the development of the water sector.
This move aligns with the ambitious plan of the Kenya Kwanza administration to invest in water harvesting and storage for domestic use, livestock, and irrigation.
The objective is to alleviate water challenges caused by climate change through the construction of at least 100 large dams through PPPs, 1000 medium dams, and 3000 small dams.
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