- Ngugi had served for two years since 2019 after replacing Jared Othieno
- Kenya Power is among 18 State parastatals set for reforms under the technical guidance of the International Monetary Fund (IMF).
Image: COURTESY
State-controlled electricity distributor Kenya Power has appointed Rosemary Oduor as acting managing director following the sudden resignation of Bernard Ngugi.
In a statement, Kenya Power chairperson Vivienne Yeda thanked Ngugi who took over leadership of the power utility in 2019, wishing him the best in his future endeavors.
"We wish to inform our shareholders that the board has appointed Rosemary Oduor as the acting managing director and chief executive of the company with effect from August 4 following the resignation of Bernard Ngugi," Yeda said.
Ngugi who has accumulatively served the company for 32 years in different roles did not give reasons for resignation. He had not responded to our calls or messages by the time of going to press.
He took over from Jared Othieno who had been the acting CEO since July 2018 following the exit of the former CEO Ken Tarus who was charged in court with conspiring to commit an economic crime and abuse of office.
Tarus was charged alongside his predecessor, Ben Chumo, and a number of other senior managers of the power distributor. They have denied all the charges.
The soft-spoken Ngugi had in recent times staged a campaign to weed out employees who were colluding with outsiders to effect illegal connections.
Even so, he was struggling to stabilize the company's finances.
Ngugi who prior to the appointment to the top position was the company’s general manager in charge of the supply chain said during his appointment he would immediately seek to turn around the loss-making State-run firm’s fortunes.
“My immediate focus is to lead the company towards improved profitability while ensuring the business fulfills its socio-economic purpose,” he had said following his appointment.
This put him at loggerheads with shareholders of the NSE-listed firm, government and trade unions over turnaround plans amid a streak of losses.
The firm recorded a loss after tax of Sh940 million compared to a profit of Sh0.26 billion in 2019. This was despite a tax credit of Sh6.1 billion issued by the government.
The tax credit was largely due to a decrease in resident corporate income tax rate from 30 per cent to 25 per cent as one of the Government’s measures to cushion businesses from the negative impact of the Covid-19 pandemic.
Oduor is taking over the firm's leadership at the height of parastatal reforms under which the utility company is expected to undergo considerable operational reviews.
Kenya Power is among 18 State parastatals set for reforms under the technical guidance of the International Monetary Fund (IMF).
Oduor holds a Bachelor of Technology Degree in Electrical and Communications Engineering from Moi University and a Master of Business Administration from the University of Nairobi.
She is a registered Professional Engineer with the Engineers Board of Kenya.
She has wide experience in power engineering and management having joined the Company in 1991 and served in various senior positions.
Prior to her appointment, she was the Company's general manager in charge of Commercial Services and Sales.
“The Board of Directors would like to assure all of Kenya Power’s stakeholders, that our priority remains the successful implementation of the growth strategy in order to place the Company firmly on the path towards sustainable profitability,” the board chair said.
The incoming managing director joined the company in 1991 and served in various positions.