The Auditor-General has released a comprehensive report on the Kenya Power and Lighting Company PLC (KPLC) for the financial year ending June 30, 2024. The report, which examines financial compliance, governance, and risk management practices, highlights both achievements and areas requiring urgent reform at the state-owned utility giant.
The report is structured into three key areas: financial statement compliance, the lawfulness of public resource use, and the effectiveness of internal controls. According to the Auditor-General’s findings, the company’s financial statements were fairly presented in line with applicable accounting standards.
“I have audited the accompanying financial statements of the Kenya Power and Lighting Company PLC… and confirm they are fairly presented in accordance with the applicable financial reporting framework,” the report states.
However, the Auditor-General raised significant concerns about the use of public resources. “The report examines compliance with applicable laws, regulations, policies, and gazette notices… and whether such funds are applied for their intended purpose,” the statement reads. It calls for greater transparency in how Kenya Power applies public funds, citing the need for compliance with government directives and operational efficiency to meet public expectations.
The final section of the report scrutinizes Kenya Power’s internal control systems and governance structures. “This part responds to the effectiveness of the governance structure, risk management environment, and internal controls developed and implemented,” the Auditor-General noted. Despite ongoing efforts to strengthen these areas, the report identified shortcomings that may hinder KPLC’s ability to ensure accountability and operational efficiency.
The report also reminds KPLC of its legal obligations under Kenya’s Public Finance Management Act, 2012, and the Public Audit Act, 2015. It underscores the need for “an effective financial management system that ensures public resources are used lawfully and efficiently.”
