Kenya Power may no longer be responsible for constructing electricity lines if proposals by the National Treasury and Economic Planning Professor Njuguna Ndung’u sail through.
During a budget speech for the financial year 2023/2024 made on Thursday, Prof.
Ndung’u announced a four-point action plan that targets to turnaround the electricity distributor currently choking in debt. “The government is keen on ensuring KPLC is financially sustainable by restructuring its balance sheet mainly focusing on the huge loan balances, payables and receivables in order to reduce liquidity gaps facing the company,” said Prof.
If the proposals are adopted by the National Assembly, Kenya Power will be forced to transfer all its transmission and power lines assets to the Kenya Electricity Transmission Company (KETRACO).
The government also plans to implement a turnaround strategy that will ensure the power distributor reduces system losses from 22.4% to 14.4% by end of June 2025.
Treasury also proposes shaking up Kenya Power’s governance by giving private sector players fair representations to reflect its shareholding structure.
According to Prof.
Ndung’u, these measures which commenced in FY2022/23 are aimed at turning around Kenya Power and Kenya Airways with the aim of improving their efficiency, reducing costs and increasing revenues. “Competition in economy move But Mathira MP Wambugu Ngunjiri refuted those assertions Cic, to take come back! 3 March 18, 2022 — Members of Parliament now want KAA to recruit directors from private consulting agencies paid millions of shillings to revive failing state corporations,” he added regarding KQ.
The government policy stance is to turn around the airline and position it as a pan-African carrier that will ensure it is run with profitability and sustainability objectives eventually reducing the airline’s dependency on budgetary support.
Ndung’u has further urged the National Assembly to accelerate the passing of the Privatization Bill 2023 submitted last month which seeks to repeal the current Privatization Act of 2005 and restructure State-Owned Enterprises (SOEs).
Treasury backs enactment of the bill to enable selected SOE to achieve their full potential by entrenching commercial principles and reduce their reliance on exchequer funding.
