KPLC DILEMMA

While averaging Ksh200 at the NSE, KPLC may seem to be in a roll to a casual observer. But as they say, never judge a book by its cover.

A behemoth of KPLC’s stature with a monopoly to boot is expected to be a star performer as well as our icon of corporate ideals. But the reality is a different kettle altogether.

Take the treated poles tender for instance. The tender was advertised and a South African company won the bid. Whether it was competitive or not is neither here nor there. Its only later on that the company was linked to the ‘parastatal’s’ Human Resource Manager who was to become Sam Gichuru’s wife after a much publicized divorce with his first wife! Phew!

The monopoly is literally hemorrhaging cash yet in Kenya they can purchase electric poles made of steel or concrete which, though expensive will last longer than the wood ones.

But I always say that credit should be given where it’s due. The connection rate of new customers is now satisfactory if past standards are anything to go by. But this brings in a new kind of problem: It’s projected that by September the peak power consumption will be high leaving a surplus of only 200MW.

This is at a time when no new power plants are projected to be connected to the grid anytime soon! While at it, factor in distribution system loses of 20% against an industry standard of between 8-14%.

Sometimes back, its ownership became a source of news after NSSF offloaded its share which it held making it a parastatal! The shares were purchased by Transcentury Group owned by the President’s men. This brought a conflict since the government isn’t a major shareholder anymore. Whether it’s still a parastatal or not is yet to be seen, but their fleets still adorn the blue license plates!