Corporate News
Kenya Power chief executive Ben Chumo said the electricity distributor
is moving to a leaner organisational structure. PHOTO | FILE
By DOREEN WAINAINAH, dwainainah@ke.nationmedia.com
In Summary
- Kenya Power is offering the affected staff send-off packages that CEO Ben Chumo says are meant to smoothen their exit, including payment of three months’ salary in lieu of notice, advance payment of eight months basic salary and a fully paid for pre-retirement training.
- The shakeup, which will cost the company about Sh430 million, is the result of a PwC audit of Kenya Power’s structural and financial fitness to perform its mandate.
- The number of executives reporting to the managing director has been reduced to 10 from the previous 18.
Electricity distributor Kenya Power
has sent 24 senior staff packing in a management shake-up its chief
executive Ben Chumo says is linked to a recent audit of the firm that
recommended a reduction of positions at the top.
The majority of the exiting managers had been asked to apply
afresh for the fewer top jobs that were left after the restructuring,
but were not successful.
“The new positions were advertised internally and
externally so we can promote staff with potential and also bring in new
blood,” said Dr Chumo, adding that Kenya Power is moving to a leaner
organisational structure that involves the merger of some management
functions.
The number of executives reporting to the managing director has, for instance, been reduced to 10 from the previous 18.
Kenya Power is offering the affected staff send-off
packages that Dr Chumo says are meant to smoothen their exit, including
payment of three months’ salary in lieu of notice, advance payment of
eight months basic salary and a fully paid for pre-retirement training.
The packages will cost the company about Sh430 million.
The shake-up is the result of an audit of Kenya
Power’s structural and financial fitness to perform its mandate. The
audit was done by consultancy firm PricewaterhouseCoopers (PwC).
“We contracted PwC to find the best package in line
with the affordability and market trends culminating to the drawing of
a five-year strategic plan whose implementation has begun,” said Dr
Chumo.
Under the new structure, Kenya Power’s departments will be headed by general managers who have replaced chief managers.
The general managers will head the ICT, human
resources, business strategy, regional coordinator, supply chain,
corporate affairs, customer service, infrastructure development and
finance departments.
Some of the departments that were merged in the
structural changes include energy and transmission, operations and
distribution that now make up the network management division.
All the retiring employees are above 50 years of age and at most eight years away from the official retirement age of 60.
All senior managers who have agreed to go on
voluntary retirement have been asked to reach the general manager in
charge of human resources and administration not later than Wednesday.
Revenues vs staff costs
Kenya Power reported a pre-tax profit of Sh4.2
billion in the half-year ending December 2014, an increase of 53 per
cent compared to Sh3 billion for the same period in 2013.
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