Keter blacklists 350 firms in Kenya Power tenders scam

Kenya Power managing director Ken Tarus at a press conference on May 28, 2018. PHOTO | DIANA NGILA | NMG

What you need to know:

  • The action follows findings of an internal Kenya Power audit that revealed that 350 out of the 500 contractors did not meet the set criteria, to be pre-qualified.
  • Reports indicate that some employees, through nepotism and kickbacks, had been giving tenders to questionable firms.
  • Kenya Power has sacked 18 employees following the audit that revealed that they jointly owned companies that were shortlisted for Kenya Power contracts with their children, spouses and relatives.

More than 350 companies linked to corrupt tender dealings at Kenya Power #ticker:KPLC have been blacklisted from energy sector tenders, Energy minister Charles Keter said Monday.

The action follows findings of an internal Kenya Power audit that revealed that 350 out of the 500 contractors did not meet the set criteria, to be pre-qualified.

Reports indicate that some employees, through nepotism and kickbacks, had been giving tenders to questionable firms.

“Any contractor out of those contractors, is it 300 and something? They will never do any business in the Government of Kenya, not only the Ministry of Energy,” said Mr Keter.

“We need to circulate that list to other departments. If they are dealing with roads, if they are dealing with REA (Rural Electrification Authority), and the REA people are here, if those contractors are also in your list, we have to remove them like yesterday.”

Kenya Power has sacked 18 employees following the audit that revealed that they jointly owned companies that were shortlisted for Kenya Power contracts with their children, spouses and relatives.

Kenya Power managing director Ken Tarus reckons that no money was lost in the tendering scam.

“We have identified that the firms were pre-qualified in a manner that was not right. In the meantime, we will not do business with them,” he said.

Many of the tenders were for repair of electricity supply infrastructure.

Director of Public Prosecutions Noordin Haji has ordered speedy investigations into Kenya Power following the internal audit.

Mr Haji has given Inspector General of Police Joseph Boinnet 21 days to conclude investigations in order to allow the prosecutor to take the case to court.

The electricity distributor that has in the recent past been dogged with controversy of severe criticism from Kenyans regarding inflated power bills and generation of e-tokens.

Early this month, Public Investment Committee asked the Auditor-General to conduct a special audit of the system used by Kenya Power to generate tokens for prepaid electricity customers.

Mvita MP Abdulswamad Nassir, who chairs the committee, said members were concerned about reports that companies could be minting millions off the systems at the expense of Kenyans.

“One of the issues that we are going to requesting at the special audit is how this whole thing was tendered, to look at the details of those companies, whether they are qualified to offer those services and the financial services,” he said.

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