Kenya Power Company Managing Director Geoffrey Muli was Thursday turned away from Parliament for failing to give a comprehensive report on why the company has been facing losses.
Appearing before the National Assembly Public Investment Committee on Commercial Affairs and Energy, the MPs castigated Muli for failing to outline why the company has been bearing losses yet the prices of electricity had skyrocketed.
Since 2014,the utility firm has made losses amounting to a whooping Sh 74 Billion according to the Auditor General Report.
“The thinking of Kenyans is that cartels are benefiting from milking Kenyans. Kenyans are suffering because they are paying cartels,”
“KPLC is overpricing electricity yet its dying.Why would a monopoly make losses from where?”posed the Chair of the Committee David Pkosing.
Amidst the flaring temperatures of the lawmakers, 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 wrong investment on an anticipated demand of 5000 megawatts of electricity in the country.
“There were a number of credit taken during that time to build sub stations and strengthen the network in readiness to dispatching 5000 megawatts demand which was anticipated,”he said.
Since the demands were never realised,KPLC has been paying loans to offset the liability taken on that investment.
“After those investment the 5000 megawatts were never realised and we had to take the burden of servicing those credits leading to the negative working capital,”Muli stated.
The KPLC MD mentioned they have written to the National Treasury to release the Sh 19 Billion that they are owed through the services of 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.
Ugunja MP Opiyo Wandayi supported the move to send KPLC officials to 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
Wandayi pointed out that the frequent turn overs of the CEOs within the government entity is closely linked to the huge losses.
“Who are the faces behind this shenanigans and milk cow that has been milked for so long until its now crumbling,infact dying,”he said.
The Pkosing led committee has given the KPLC officials two weeks to substantiate queries raised against them by the Auditor General.
