• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Energy

Kenya Power holds Sh10 billion dead stock

4 years ago
in Energy, highlights, Home, home-news, latest News, Markets
2 min read
0 0
0
25
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Kenya Power holds Sh10 billion dead stock

Kenya Power holds about Sh9.8 billion in dead stock, the Energy Ministry has said, underlining the electricity supplier’s messy procurement programmes.

Energy Principal Secretary Gordon Kihalangwa said an audit has revealed piles of idle stocks at the utility firm, including power transformers.

“We have realised that Kenya Power has a dead stock of Sh9.8 billion currently,” he told the National Assembly’s Public Accounts Committee (PAC) yesterday without providing a breakdown of the idle equipment.

Insiders at Kenya Power, however, said the dead stock include items such as cables, meters, and transformers that have been sitting in the warehouses for more than five years.

Last year, the Kenya Power board insisted that the company recognise the diminution in value of non-moving inventory by charging that loss of value to the income statement. This partly contributed to the company posting a historic Sh7 billion loss in 2020.

Read: GOIL leads equities on the stock market

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

Meanwhile, Mr Kihalangwa told MPs that two out of the 22 independent power producers (IPPs) had offered to renegotiate their purchase agreements with Kenya Power even as the State pushed on with its plans to lower electricity charges by December.

“Two of the IPPs have come forward to say they want to negotiate. We want to fix the problems at Kenya Power,” he said without naming the firms.

Some 22 IPPs are operating in the power sector in Kenya.

President Uhuru Kenyatta in April appointed a task force to review all power purchase deals with independent producers. Renegotiating the energy prices and other terms downwards by the end of December is one of the recommendations in a report presented to the President.

The team recommended a 33 percent cut in electricity prices, which would bring the average cost of a kilowatt-hour (kWh) to Sh16 from the current Sh24 unit.

The electricity distributor has also been barred from finalising any un-concluded power purchase deal or renewing expiring contracts with the producers in the wake of a rise in power bills that hit a 38-month high in August.

Mr Kenyatta appointed the task force after it emerged that Kenya Power had signed contracts committing it to take more electricity than it can sell.

The flawed contracts have exposed Kenya Power to paying onerous capacity charges to energy producers even when their plants are idle.

An inter-ministerial committee has since been formed to run a fresh audit on Kenya Power’s supply and demand needs, and pricing policies. Its membership draws from, among others, the Directorate of Criminal Investigations, the Central Bank’s Financial Reporting Centre, and the Assets Recovery Agency.

Interior Cabinet Secretary Fred Matiang’i earlier this month said the electricity supplier had been declared a ‘Special Project’ and that the team would also oversight reforms at the utility firm.

“We are going to do a forensic audit of some of our systems and procedures at Kenya Power. We are working jointly at an inter-ministerial level to reduce the system losses, including the theft of power. We will address all challenges that result in passing unnecessary costs to the consumers,” Dr Matiang’i said.

Kenya Power returned a net loss of Sh2.98 billion in the financial year ended June 2020 — its first in 17 years.

Source: businessdailyafrica
Via: norvanreports
Tags: Central Bank’s Financial Reporting CentreIndependent Power Producers (IPPs)National Assembly’s Public Accounts Committee (PAC)
No Result
View All Result

Highlights

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

Trending

Features

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

August 2, 2025

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes Parliament has adjourned...

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.