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Kenya Power In Aasset Seizure Graft War
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Published on 12/08/2021

Kenya Power shareholders have agreed to legal action and asset recovery from employees found to have used their official positions for personal benefit. This is in the wake of forensic and lifestyle audits being pushed by the company, as part of reforms to seal revenue leaks mainly through procurement processes,  and improve the company's bottom line. The audit is in line with recommendations by the Presidential Task Force on Power Purchase Agreements, which released its report on September 29, advising on a number of measures to bring down the cost of power and streamline operations at the company. Ninety nine per cent of  shareholders who attended the company's Annual General Meeting endorsed legal action and seizure of assets of  those found to have been involved in fraudulent deals.

Kenya power last month announced it was to conduct various internal forensic audits, including a lifestyle investigation of its staff, spouses and close relatives. The lifestyle audit was however on November 19 halted by the Labour Court, which issued temporary orders  pending the hearing of a case filed by the Kenya Electrical Trades and Allied Workers Union. KPLC was directed to file its response to the application on or before the close of business on December 7, 2021, ahead of the hearing that will be on December 9. Last week, the company sent five senior managers on a 60-day compulsory leave as part of the audit process. This is after last month, the utility firm suspended all 59 procurement and supply chain heads to pave way for a forensic audit to identify areas of possible revenue leakages.

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