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Chumo exits Kenya Power, KenGen CEO gets 1 year

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Outgoing Kenya Power CEO Ben Chumo (centre) hands over to the acting chief executive Ken Tarus on January 4, 2017. Looking on is Kenya Power chairman Kenneth Marende. PHOTO | DIANA NGILA

Ben Chumo’s three-year reign as Kenya Power CEO ended on Wednesday, while KenGen extended the tenure of Albert Mugo by a year.

Both were due to end their first three-year tenures tomorrow having begun their terms at the energy firms on January 7, 2014.

Dr Chumo exits the utility firm after his bid for a second three-year term was thwarted by a court order which stopped the Energy minister and board from renewing his tenure at Kenya Power.

Dr Kenneth Tarus now takes over as acting chief executive of Kenya Power pending recruitment of the substantive boss, the company announced on Wednesday. He was the general manager in charge of finance prior to the appointment.

“He brings over 20 years corporate leadership and management experience, five of which are in the energy sector,” said Kenya Power chairman Kenneth Marende at a media briefing on Wednesday.

“We expect him to aggressively pursue business growth and a diversification strategy,” said Mr Marende.

Dr Tarus now has to face head-on the challenges facing Kenya Power including mounting customer debt, surging power losses, and illegal electricity connections denying the firm revenue.

He holds a doctor of philosophy degree in business administration (Finance) from Kabarak University as well as an MBA and bachelor of commerce degree from the University of Nairobi. Dr Tarus is also a certified public accountant.

The Kenya Power board plans to hire a professional firm to recruit a new CEO, the chairman said. KenGen’s board of directors did not disclose why it gave Mr Mugo a one-year extension which took effect Wednesday.

READ: Kenya Power CEO new term bid stopped

Mr Mugo was born in 1957 and is due to hit the retirement age of 60 this year.

“He will be overseeing a number of new projects which are at various stages of development,” said KenGen chairman Joshua Choge in a statement. Industrial Court judge Nelson Abuodha in November last year issued temporary orders stopping the renewal of Dr Chumo’s term.

This was after activist Okiya Omtatah moved to court saying Dr Chumo had attained the retirement age of 60 and hence should leave office.

On Wednesday Mr Marende said the labour case now stands overtaken by events.

“We are not conversant with the context of the pleadings. This action disposes of the issues in the case,” he said in response to queries.

Dr Chumo’s tenure at Kenya Power has seen electricity connections double to 4.87 million households and industries as at June 2016, from 2.3 million customers in June 2013 when he took office.

“This is what I’m very proud about, enhancing connectivity,” said Dr Chumo yesterday. Kenya Power’s net profit stood at Sh7.5 billion for the full year to June 2016 from Sh3.4 billion in June 2013, an annual compounded growth rate of 30.2 per cent.

Dr Chumo joined Kenya Power in 1986 as a human resource officer, rising to chief manager in charge of HR in 2003 before taking over the corner office a decade later.