This archive report was first published on 7 July 2019.
Energy Sector Faces Stagnation as Chief Executives Remain in Limbo ¶
Published on July 7, 2019
Kenya Power and Kenya Pipeline Company, two critical entities in powering the Kenyan economy, have been operating without substantive managers for over a year. This has put their critical operations at risk, with the energy sector facing stagnation as a result.
Kenya Power, the electricity retailer and distributor, has been without a substantive management team since its former managers were suspended on allegations of corruption exactly one year ago. The company has since been operating with an interim management team, with the board proposing a mutual separation with the suspended employees to enable the hiring of new managers.
The deal, which would see the company part with hundreds of millions in paying the managers to quit, is almost finalised, with Energy Cabinet Secretary Charles Keter noting that the firm cannot wait for the case to be heard and concluded while being run by an entire management team in an acting capacity.
Kenya Pipeline Company has also been operating with about half of its management team in an acting capacity for the better part of the last year. The corporation, critical in ensuring the country is well stocked with petroleum products, has a managing director as well as six out of nine general managers in an acting capacity.
Energy Cabinet Secretary Charles Keter said the board and the indicted employees are finalising the deal, noting that the firm cannot wait for the case to be heard and concluded while being run by an entire management team in an acting capacity.
“We want to get out people who have been there. As it is, we cannot advertise for the positions because they were suspended and the law is clear on this,” he said.
It is not an oddity for state officials to step up in acting capacities when their bosses’ positions fall vacant. In 2016, this hit a near crises level when more than 20 major parastatals including key regulatory bodies did not have substantive chief executives.
