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Kenya Power’s story depicts a company that reached dramatic heights only to face an excruciating tumble, in a case of a monopoly gone bad.

The utility firm is among firms changing management and directors on short notice, leading to the latest appointment of an acting chief executive officer — the sixth in six years — signalling trouble at what was once the darling of traders at the Nairobi Securities Exchange (NSE).

Geoffrey Muli, replaced Rosemary Oduor who proceeded on annual leave, having acted in the same capacity since August 2021. Muli who is an insider was also acting general manager in charge of regional coordination at the troubled State-owned electricity distributor.

Kenya Power has had 15 CEOs between 1922 and 2014 which means that each CEO served an average of six years and four months equivalent to two terms.

The company was incorporated in 1922 as East African Power and Lighting Company Ltd to serve Kenya, Uganda and Tanzania. Its name changed to the Kenya Power and Lighting Company Ltd (KPLC) in 1983. To this day, many wonder how such a powerful business empire disintegrated almost overnight, hiring and firing six CEOs between 2017 and 2022, making it appear like one of the most unstable organisations in the country.

Management changes

But those acquainted with the happenings at the company are now speaking out.

Perpetual management changes both at the energy ministries and the firm itself are to blame for Kenya Power’s woes, according to a former CEO Ben Chumo, a Human Resources specialist who now Chairs Eagle HR consultants.

“There is a stark link between the company’s performance and the instability in appointments. There has been a tendency by certain board members to put these CEOs in acting capacity without confirming them. This is having a demoralising effect on acting CEOs and staff which can explain the firm’s dip in revenues, said Chumo.

Energy ministry, for example, is now under Monica Juma who replaced Charles Keter who had served for eight years before bowing out in February when he was moved to Devolution before eventually resigning to focus on his failed bid to become the next Kericho Governor.

The “vacuum” and “acting” positions, according to Chumo, are threatening the firm’s long-term survival.

“Without people with the firm’s knowledge I don’t see stability and continuity,” he said, blaming the situation on lack of continuity with most individuals entering the company clueless of the firm’s ways of working.

The board of KPLC has been hiring and firing its CEOs – and more worrying – putting executives in “acting capacity” over extended periods without imminent assurances. At Kenya Power’s peak, its before-tax profit for the financial year 2016/17 soared to Sh12.1 billion, the best the company has managed yet.

It attributed the results to increased sales as a result of improved power supply and an upsurge in connectivity sustained by tariff increases that had been achieved during the year and ensuing years before “Olympus’ began to plunge.

At the wheel was Chumo who took over the reins in June 2013 from his role as the company’s Chief Manager, Human Resources and Administration – initially in an acting capacity to replace Joseph Njoroge who was elevated to the firm’s parent ministry as Energy and Petroleum PS.

Graft allegations

Chumo served as CEO until January 2017 then retired upon attaining the age of 60.

In came the company’s Finance Manager, Ken Tarus also in an acting capacity who only lasted one and half years before being ousted on graft allegations.

He was suspended following summons over corrupt dealings amounting to more than Sh4.5 billion which also implicated 40 senior executives of the company.

Bernard Ngugi, the company’s General Manager in charge of supply Chain was delegated his roles, replacing Tarus in a decision the company said had resulted from “a competitive recruitment process.”

Ngugi’s surprise departure left many including top management in awe. He took over from Jared Othieno who had been in the same position albeit in an acting capacity, having worked at the firm for over 30 years in different capacities.