PIC orders Kenya Power forensic audit over faulty transformers

A parliamentary committee has called for a forensic audit of Kenya Power #ticker:KPLC over the purchase of faulty transformers and the platform the firm uses to generate tokens for the prepaid system of paying for electricity.

The recommendations is contained in a report by National Assembly Public Investments Committee (PIC) on State corporations.

Kenya Power is accused of knowingly buying and fitting hundreds of defective transformers, exposing consumers to dangers of electric faults.

The transformers failed the company's own quality tests; materials used to manufacture them were of poor quality, their oil was leaking, and they were losing too much power.

The company was also earlier in the year accused of promoting third party vendors that charge customers more than Kenya Power for prepaid tokens.

VendIt and Dynamo Digital Company are some of the vendors that were adversely mentioned.

Auditor-General Edward Ouko is expected to shed light on how the firms were procured and their ownership.

Appearing before the Senate committee of Energy chaired by Nyeri Senator Ephraim Maina last month, Energy secretary Charles Keter said that the government will no longer buy transformers from vendors, but directly from manufacturers.

Mr Keter said the move will enhance safety and integrity of transformers and end power outages caused by substandard equipment.

“Already we have stopped buying from the vendors because of the risks involved. We are now going directly to manufacturers because in the event of any mishap, we’ll know where to go,” Mr Keter told the Senate’s Energy committee at Parliament Buildings.

Kenya Power accepted the faulty transformers and paid for them as part of a “compromise” negotiated in an out-of-court settlement after the supplier sued.

The transformers were supplied by a Nairobi company — Muwa Trading Company Limited — and India’s Nucon Switchgears PYT Limited.