Kenya Power has dismissed 20 employees implicated in a sprawling fuel and meter scandal, marking a major escalation in institutional accountability after an audit uncovered significant losses fuelled by internal collusion.
The cover-up came to light in the Auditor-General’s 2023/24 financial report, which revealed that staff, along with security personnel and fuel transport operators, misappropriated over 1.18 million litres of diesel valued at Sh207.65 million meant to power off‑grid substations across Turkana County between October 2021 and December 2023.
In parallel, investigators found irregularities involving meter procurement and issuance in Kenya Power’s Central Rift Valley region.
Meters worth Sh17.47 million were released under dubious circumstances during the 2022/23 budget year, raising suspicions of inflated billing and siphoning of revenue from vulnerable communities.
It is against this backdrop that the utility’s management took unprecedented action, terminating the contracts of 20 employees directly implicated in fraudulent fuel handling and meter distribution schemes.
Managing Director Dr Joseph Siror confirmed that the internal inquiry, launched early this year, unearthed evidence of complicity among staff, guards, and third-party contractors.
He underscored that the punitive measures were part of the company’s renewed zero-tolerance stance, amid growing public outrage over the diversion of taxpayer-funded resources into private hands.
Auditor-General Nancy Gathungu had earlier flagged the irregularities, warning of a breach of procurement laws and internal controls.
She recommended expanding investigations to other regions supplying diesel to off-grid stations, citing the pattern of collusion uncovered in Turkana
Moreover, the inquiries into faulty meter issuance echoed similar flaws in Kenya Power’s supplier vetting processes and oversight systems.
The scandal has broader repercussions for consumers, who ultimately bear the cost of such inefficiencies through the Fuel Energy Charge a pass-through levy for the operation of off-grid generators regulated by EPRA.
The exposure follows expensive fuel tenders cumulatively valued at over Sh14 billion highlighted separately by the Auditor-General as breaches of the financial law and further eroding public trust.
In response, Kenya Power has pledged to improve its procurement controls and protect consumers from inflated costs.
A discipline and oversight committee has been constituted, with executive oversight to ensure that expelled employees are held accountable and that the recommended investigations widen to all affected stations.
However, public confidence remains fragile. Analysts argue that without profound governance reforms and greater transparency, these corrective steps risk being seen as cosmetic.
Sustained action from both Kenya Power and oversight bodies nparliamentary committees, EPRA and the Ethics and Anti‑Corruption Commission will be necessary to restore trust and prevent recurrence.
As the fallout spreads, the dismissed staff face not just unemployment, but potential criminal prosecution.
Meanwhile, Kenya Power’s shareholders and consumers alike will be watching closely to see if this purge yields lasting reforms or simply becomes yet another scandal overshadowed by systemic inertia.
Written By Ian Maleve
