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Deloitte to audit Kenya Power systems in Sh18m deal

kenya power
A Kenya power technician at work. FILE PHOTO | NMG 

Electricity distributor Kenya Power #ticker:KPLC has inked a Sh18.2 million deal with Deloitte that will see the Big Four accounting firm audit its information technology (IT) systems.

As part of the deal, Deloitte is expected to conduct “a comprehensive and independent” audit on Kenya Power IT systems within 60 days.

“The consultant is expected to provide an independent assurance on the KPLC ICT systems by undertaking a ‘top-to-bottom’ audit that will reassess the functional scope, compatibility and capabilities of these systems,” said Kenya Power in a tender notice.

The scandal-prone power utility has suffered perennial token generation hitches that have left thousands of customers stranded without power.

Some 4.5 million clients are on prepaid meters, accounting for 69 per cent of Kenya Power’s customer base of 6.5 million.

“The specific objectives for the engagement include ascertaining whether the company is getting maximum benefits out of the ICT investments thus far undertaken and has received optimal value for money on the ICT investments,” said Kenya Power.

Kenya Power posted a 63.7 percent decline in net profit to Sh1.92 billion in the financial year ended June 2018 on higher costs.

Early this year, Deloitte bagged another Sh58 million Kenya Power contract for consultancy to implement a new structure aimed at streamlining the utility service provider amid a recent plunge in profitability.

The Big Four accounting firms, Deloitte, PricewaterhouseCoopers, Ernst & Young (trading as EY) and KPMG, collectively earned more than Sh180 million in plum government contracts last year.

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