Members of Parliament have turned away the Kenya Power MD Muli for failing to give an extensive report on losses facing the Company.
The MPs castigated the power company for failing to outline why the company has been bearing losses yet the prices of electricity had skyrocketed.
The company has made losses amounting to a whooping Kes 74 billion since 2014 according to the Auditor General Report.
The National Assembly Public Investment Committee on Commercial Affairs and Energy, chairman David Pkosing noted that Kenyans think cartels are benefiting from milking Kenyans.
“KPLC is overpricing electricity yet it’s dying. Why would a monopoly make losses, from where?” he asked the Managing Director as MPs got agitated.
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While appearing before the committee, Muli tried to defend the government parastatal saying since 2019 their financial status has been improving.
He explained that between 2014 and 2017 they have been recording losses due to wrong investment in an anticipated demand of 5000 megawatts of electricity in the country.
“There were a number of loans taken during that time to build sub stations and strengthen the network in readiness to dispatching 5000 megawatts demand which was anticipated,” he said.
Further, he said that the demands were never realized, and Kenya Power has been paying loans to offset the liability taken on that investment.
“After that investment, the 5000 megawatts demand was never realized and we had to take the burden of servicing those credits leading to the negative working capital,” he said.
Additionally, Muli noted that the company has written to the National Treasury to release the Kes19 billion that they are owed through the services of the Rural Electrification Program.
“All rural customers who are connected belong to the government. KPLC services those customers on behalf of the government, the government is supposed to refund us,” said Muli.
On his part, Ugunja MP Opiyo Wandayi supported the move to send KPLC officials back to give them ample time to furnish the committee with details concerning the losses trajectory.
“If they fail to come with a comprehensive report we will have to go back to the House to indict each one of them including their predecessors,” said Wandayi
He also pointed out that the frequent turnovers of the CEOs within the government entity are closely linked to huge losses.
