End of era as Njoroge readies to leave KenGen

BY NJIRAINI MUCHIRA AND MACHARIA KAMAU

Power generator KenGen is gearing up for a top management transition after Eddy Njoroge announced he would quit on June 30, next year.

The company is expected to start the process of recruiting Njoroge’s replacement in January and have a designate CEO by March.

Mr Njoroge, who has become synonymous with KenGen since taking over in March 2003, told shareholders Wednesday that he intends to exit after ten years of service.

“I believe that ten years is sufficient for one to make a difference in an institution. Now it is time to exit the cockpit in favour of a new captain that will take KenGen plane to higher skies,” he said.

His last working day will be June 30. “I will therefore not be sitting on this side of the table next year but will be sitting with you as a shareholder and asking the difficult questions. For this reason, I decided to say goodbye to you at this AGM,” he added.

He was appointed to the position on an initial four-year contract that was in 2007 renewed for three years. The board, however, extended the three-year term to five years on December 17, 2010, which will expire on March 25, next year.

In the ten years he has been at the helm of the electricity generator, Njoroge has enjoyed highs and lows.

The firm’s listing in May 2006 was one of the highs and probably the moment that Njoroge prides in most.

Other than raising Sh26 billion from an Initial Public Offer (IPO) that had been oversubscribed by a historic 236 per cent, the move introduced many to Nairobi Securities Exchange, bringing on board 270,000 new retail investors to the bourse. 

While there are many credits to the man’s name, Njoroge has also been caught in controversy. Under his watch, KenGen has been accused of losing billions of shillings due to flawed tendering processes.

Norwegian firm

Among the recent and probably most denting to Njoroge’s credibility was the alleged irregular award of a contract to a Norwegian engineering firm Green Energy Group AS. The firm was contracted to supply and install wellheads at KenGen’s geothermal sites in Olkaria, which was valued at Sh8.5 billion.

The contract had been awarded to the company despite reports that in a previous contract, the firm had installed a malfunctioning wellhead in one of the wells.

Allegations were made that the tendering process had been flawed and rules bent to accommodate the Norwegian firm that is said not to have had capacity to undertake the job. There have been numerous claims of fraud concerning contractors, who  allegedly have been paying kickbacks to senior officials at KenGen and in turn getting contracts worth hundreds of millions of shillings, sometimes billions.