Manager jobs to be scrapped in Kenya Power restructuring

Kenya Power is undertaking a major reorganisation that could lead to more than half of its senior managers losing their positions.

The company is making the changes as it tries to redeem its image that has recently suffered a beating following claims of inflated bills and a flawed tender process manipulated by employees to award contracts to their own firms.

In the new corporate structure, Kenya Power will have five major departments, less than half of the 13 currently in place.

The managers report directly to the chief executive.

The departments will be collapsed into five directorates.

The reduction will mean a leaner executive suite, with some of the managers having to settle for lower jobs or exit.

However, the management said no jobs would be lost.

Managers heading the new directorates would be engaged on contractual basis, as opposed to their current ‘permanent and pensionable’ terms.

At a briefing in Nairobi, Kenya Power Chairman Mahboub Maalim Mohamed said the changes were expected to bring about “improved customer service and effective management operations”.

“The restructuring has also been necessitated by recent policy developments within the sector and other regulatory changes,” he said.

The process, which the firm said started in 2017, resulted in the creation of five directorates, namely energy supply management, commercial, operations, corporate services and finance.

The heads of the directorates will report directly to the chief executive.

“The company’s top management will be subjected to three-year renewable contracts based on performance,” said Mr Mohamed.

“Notable is the formation of the commercial directorate that will help focus on customers… the team will drive and improve the company’s business development strategies and ensure implementation to enhance business growth and achieve revenue and customer service targets.”

The reorganisation has also led to reduction in the number of administrative regions from 10 to seven to effectively manage operations and costs as well as optimise resources.

Chief Executive Ken Tarus said no jobs would be lost and that all the managers would be absorbed into the new structure.

Internal audit

At the same time, the firm said it had fired 18 employees that were found engaging in irregular tender awards.

An internal audit by Kenya Power revealed that the employees were influencing the tender process so that companies they owned ended up getting lucrative labour and transport contracts.

The audit report named the staff as the owners of some of the contracted firms while others received bribes to ensure the companies got the contracts.

“Nineteen employees were investigated and 18 have been dismissed after they were found culpable… one employee was cleared by the audit,” said Dr Tarus.