Kenya power now playing in the league of NYS season 1 and 2

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Theft in Kenya is now a string of connections pulled by most respected officials in cahoots with big companies conning Kenyans blindly as they sleep less and less to meet their expenses and pay the huge government bill.

In a new revelation,electricity distributor Kenya Power cooked its books to the tune of billions of shillings in two years after it was roped into a political scheme to keep the electorate happy in the run-up to last year’s General Election according to business daily.

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Auditor-General Edward Ouko has, in his latest report, laid bare the full extent of the financial misrepresentation, whose aim was to keep electricity prices artificially low and help the Jubilee government get re-elected.

Last year the company, acting on instructions from the government (which was seeking re-election in the August poll), suspended the collection of fuel cost charge on electricity bills, leading to a pile-up of uncollected cash.

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The fuel cost charge which is used to compensate diesel power generators was held constant at Sh2.85 per kilowatt hour (kWh) in the seven months to August last year despite a steep increase in the amount of diesel-generated power on the national grid.

Kenya Power refused to restate its financial results for the years ended June 2017 and June 2018 as Mr Ouko had advised, underlining the level of impunity at the Nairobi Securities Exchange-listed firm.

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Delaying collection of the fuel levy, which was meant to contain public disaffection with the government over the high electricity bills in the run-up to the polls, however, left Kenya Power’s financial statements in disarray.

To pull off the scheme, Kenya Power went against International Accounting Standards (IAS) to incorrectly report sales, receivables, liabilities and profits.

The electricity distributor irregularly recognised unbilled fuel costs as revenue, setting off a process that saw it manipulate the reporting of other items in its books in the quest to avoid disclosing lower earnings.

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Do you believe that Kenya Power cooked books ahead of 2017 poll pressure?

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