Kenya Power has appointed Bernard Ngugi as the new CEO.
Ngugi, an accountant by profession will take over from acting MD Engineer Jared Otieno.He is the current head of procurement where he has been serving as the General Manager Supply Chain. Before that he was the Chief Accountant – Treasury Section.
Othieno has been acting in interim capacity since the ouster of Dr. Ken Tarus in July last year over corruption allegations.
Kenya Power is 50.1% owned by the Government of Kenya and is the sole retail distributor of power in the country.
The company has been on a downward path regarding its profitability, mostly attributed to corruption and poor management.
In September, the company issued a profit warning for the financial period ending June 30, 2019, which it attributed to increase in non-fuel costs.
Last year, the company issued a profit warning before posting a 63.7 per cent drop in net profit to Ksh1.92 billion due to escalated operational costs.
Ngugi is expected to return the company to steadiness, even as the company experiences dwindling fortunes and mounting debts.
In the last financial year, the Kenya Electricity Generating Company (KenGen) was demanding Ksh1 billion in penalties for flouting the 40-day window credit terms.
In June, the Directorate of Criminal Investigations (DCI) summoned 204 individuals and directors of certain companies to record statements concerning fraudulent Kenya Power billing system for post-paid customers.
Ngugi will be tasked with cleansing the company, that has lost trust with the public due to corruption cases.