In a sweeping move, Kenya Power has terminated 20 employees linked to a major fraud involving fuel theft and meter irregularities, exposing deep-seated corruption within the utility. The scandal, unearthed during the Auditor-General’s 2023/24 financial audit, reveals collusion between staff, security personnel, and fuel transporters, leading to the loss of over 1.18 million litres of diesel worth Sh207.65 million.
The diesel was intended for off-grid substations in Turkana County, but was reportedly siphoned off over two years from October 2021 to December 2023. Investigations also uncovered suspicious meter procurement activities in the Central Rift Valley region, where meters valued at Sh17.47 million were distributed under questionable circumstances, triggering fears of inflated bills affecting vulnerable consumers.
Kenya Power Managing Director Dr Joseph Siror confirmed that an internal inquiry launched earlier this year identified the involvement of employees and contractors in fraudulent schemes. He described the firings as part of the company’s renewed zero-tolerance approach amid rising public anger over misappropriation of taxpayer resources. Auditor-General Nancy Gathungu’s report had flagged breaches in procurement laws and weak internal controls, urging broader investigations into other regions supplying diesel.
The scandal’s impact extends to consumers who bear costs through the Fuel Energy Charge, a levy linked to off-grid generator operations regulated by EPRA. The exposure follows revelations of fuel tenders worth over Sh14 billion also breaching financial laws, further shaking public trust.
In response, Kenya Power has pledged to tighten procurement and oversight systems. A new disciplinary and oversight committee is tasked with ensuring accountability and expanding probes to all affected stations. Despite these measures, analysts warn that without deep governance reforms and transparency, the crisis risks becoming another cyclical scandal.
As investigations continue, dismissed staff face possible criminal charges. Meanwhile, consumers and shareholders await tangible reforms to restore confidence in Kenya Power’s management and safeguard the nation’s energy future.
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