Kenya Power Puts On Hold Payment Of Bills Via Posta Kenya

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Kenya Power has suspended all postpaid customer bill payments through Postal Corporation of Kenya.

Instead, the power man has asked its customers to pay their bills at banking halls and other payment points.

The company did not however reveal the reason behind the move.

Currently, the leading modes of payment include M-pesa, Airtel Money, Equitel and banks.

Few customers use the Postal service to pay for their bills, the most probable reason Kenya Power decided to drop the parastatal.

“We are working to interlink our website with those of our partners to provide for easy access to bank specific payment information/instructions,” reads a notice on the company’s website.

Kenya Power has in the recent past been faced with several scandals that have culminated to the company being unable to service its debts.

A recent report by the Auditor General Edward Ouko reveals that the company borrowings were Ksh113 billion as at the end of June, and that it breached debt covenants for Ksh49.99 billion long-term loans and Ksh9.98 billion short-term debt.

Read: Kenya Power Profit Shrinks By 63.7 Per Cent To Ksh1.92 Billion

Last year towards election, the company, acting from government directive suspended the collection of fuel cost charge on electricity bills leading to a pile up of uncollected cash amounting Ksh10 billion.

The fuel cost charge is used to compensate diesel power generators, and is charged at Ksh2.85 per kilowatt hour (kWh).

It is also revealed that the company was against International Accounting Standards (IAS) in order to incorrectly report sales, receivables, liabilities and profits. Consequently, the company recognized unbilled fuel costs as revenue, to conceal lower earnings.

Through such manipulation, the company reported a Ksh7.6 billion profit in the year ended June 2017, instead of Ksh366.6 million, according to the auditor general.

In the year ended June 2018, the company announced a Ksh3 billion profit instead of Ksh6 billion, and has not corrected the discrepancy since then.

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