Energy parastatals set to wait longer for chief executives

Energy secretary Davis Chirchir during a function in Nairobi in May. FILE

What you need to know:

  • Energy secretary Davis Chirchir says bosses will be hired at a go to ensure regional, gender balance.

Energy secretary Davis Chirchir says he will take longer to name the CEOs of cash-rich energy parastatals amid jockeying by political and business operatives for their preferred candidates.

Mr Chirchir said that he would appoint substantive bosses of Kenya Electricity Generating Company (KenGen), Kenya Power, Kenya Pipeline Company, Energy Regulatory Commission (ERC) and Rural Electrification Authority (REA) at the same time and after a task force appointed to overhaul policies and laws governing State corporations has completed its review.

The minister said that hiring the five CEOs at a go would also help the government satisfy constitutional requirements such as the one third gender rule and regional balance.

“It is important to have the appointments done at the same time for the five parastatals to take care of gender requirements, regional balance and other constitutional requirements,” Mr Chirchir said in an interview with Business Daily last week.

“I have received the KenGen shortlist. The remaining firms are at the tail end of interviews. There is no lacuna.”

The executive changes will give Mr Chirchir an opportunity to appoint preferred managers to shepherd the lucrative companies as the balance of power shifts in the energy sector.

Hiring the five CEOs in line with the gender rule means that the male-dominated energy sector parastatals would have at least two more women chief executives.
National Oil Corporation Kenya managing director Sumaya Hassan-Athmani is the only female head in Kenya’s 10 State-owned energy firms.

The team reviewing the operations of State corporations was due to present its report on September 15, one week ago. “I’m waiting to see the outcome so that we don’t make appointments outside the law,” said Mr Chirchir.

The corporations have appointed interim CEOs following the exit of their top brass with individuals from the Rift Valley and Mt Kenya regions dominating the line-up.

KenGen tapped Simon Ngure in June to replace Eddy Njoroge while REA in July replaced Zachary Ayieko with Ng’ang’a Munyu. Both appointees have roots in Central Kenya.

The Rift Valley has benefited with the appointments of Ben Chumo and Charles Tanui as interim bosses of Kenya Power and KPC respectively following the exit of Joseph Njoroge and Selest Kilinda.

Energy sector regulator ERC selected Dr Frederick Nyang as acting director-general following the retirement of Mr Kaburu Mwirichia in August after serving two three-year terms.

Mr Chirchir, who had in May frozen the recruitment of a new KenGen MD had differed with the firm’s board on who will be the power generator’s new boss.
The process re-started in July after ex-Kenya Power CEO Joseph Njoroge assumed office as Energy PS.

KenGen’s board chaired by Titus Mbathi shortlisted two insiders Albert Mugo (business development and strategy director) and John Mudany (finance and commercial director) as the top two candidates.

Mr Albert Sigei, vice president in charge of business support at Lafarge Nigeria, was ranked third.

The cut-off date to apply for the director-general’s post at ERC was July 3 and the board subsequently shortlisted three candidates — Joseph Njaga, Joel Imitiria and Laurencia Njagi (Kenya Power company secretary).

“The names have not reached my office yet,” Mr Chirchir said.

Kenya Power closed applications for the MD’s position on July 31 and the minister said that he was waiting for a shortlist of three candidates from the electricity distributor.

KPC had set August 5 as the last day to apply to head the firm which transports petroleum products from Mombasa to the hinterland via pipeline infrastructure.

Mr Chirchir reckoned that lack of board members at REA may further delay naming of the agency’s boss, given that recruitment and shortlisting is done by directors with the minister making the final pick.

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