The market got perplexed how the firm emerged from a loss of Sh3.19 billion to a Sh30 billion profit. What was the magic?
Several things have happened on top of how the shilling has recovered against the dollar. When we resolved the shortage of meters and other kits, this ended a backlog and allowed us to connect more customers, in the region of 400,000 plus compared to the previous year when we added slightly above 300,000 new customers.
Consumption also significantly jumped especially from the industrial consumers. We also felt the impact of the increased homes that were connected to the grid. The two helped drive our sales and then we have also been prudent in the way we manage our resources.
The share prices jumped on the news of the first dividend in six years. Is this sustainable?
We are growing revenues, revamping our network to increase availability of electricity and cutting our maintenance costs to help turn around our operations. We have been cutting trees to protect our lines and transformers. This is huge in terms of cost savings. I am confident that our performances can only get better and allow us to continue paying dividends.
Is the huge profit sustainable following a stable forex market in the context your earnings got a lift from forex gains?
Of course we might not get the huge forex gains. But remember we are doing other things, mainly connecting new customers to grow revenues. We have sorted the problem of transformers and meters.
The company was at standstill when we didn’t have these kits. Nothing was happening. Now, we have the inventory. The reduction of our cash position by Sh10 billion speaks of the inventory.
Would Kenyans think Kenya Power is profiting from the high tariffs?
Yes, the tariffs were increased. But far from the truth to suggest we are profiting from power prices. The reality is that we have subsidized the consumers for a long term while our costs including paying power generators have been rising.
Kenya Power got the short end of the stick. Remember when Kenya Power was forced to issue a 15 percent in January 2022 and just before the election. It was chaotic.
Is Kenya Power’s turn around complete?
It is not yet complete, but we are on the right trajectory for the turn around. We are still in negative working capital but wiping it out at an accelerated rate. We have started repaying loans that were on moratorium and this will reduce our liabilities as assets grow.
This past year alone we have reduced the negative capital by a whole Sh24 billion.
You profess to preaching and reciting bible verses. How did this faith help in the turnaround?
In every way. Standing with what is right. This is what I call integrity. When intense pressure comes, I stand my ground.
The faith has delivered hard work, honesty and commitment from the entire Kenya Power team.
When I took over, I found demoralised staff and it had been framed to look like everyone was a criminal. I likened this case to the story of how David sought refuge in a cave when he was being chased by Saul. When you read the book of Samuel, David escaped to the cave of Adullam, and all afflicted people joined him there.
But the next book talks about the mighty men of David like the guy who would kill 800 people using a spear, Eleazar the son of Dodo who killed a lion, you no longer associate David with the afflicted people.
This was my message to the staff and how despite the chaos when I joined, I reminded them that just like David, our story would soon be that of exploits. To me our performance is a prophecy coming true.
In most of your conversations, you repeatedly mention your salvation journey. What is that one thing about you that people do not know?
Did you know my official signature is JesusSaves? It might not be clear but that is how I sign everywhere.
Corruption has been the bane at Kenya Power triggering the exit of your predecessors. How have you dealt with this monster to guard against consuming you?
My salvation and integrity does not allow me to be swept. Since joining Kenya Power in May 2023, I have never called any evaluation team (procurement) to have a process skewed in favor or against anyone.
I have never had any interest in the entire procurement process of the company as far as vested interests are concerned. The greatest disappointment of many of my friends is that none has an advantage over others by virtue of knowing me.
Whenever you get into any position, you can always choose the path you want to take, regardless of how your predecessors fared.
By virtue of being born again, I have also ensured that there are no games around my space. I might not be a very popular guy based on my strictness and how I do things in the best and straight way possible. I made it a habit as a man who will adhere to the promises of following the right path. Salvation is a path I chose many years ago.
Frequency of outages, some that last for short durations, has gone up. What exactly is the status of the security of electricity supply in Kenya?
As a country, we are at a serious risk in terms of generation. The reserve margins are too thin and we have been load-shedding when we cannot meet the demand. Any minor failure in generation is forcing us to load-shed. That is why we need Parliament to lift the moratorium on the power purchase deals. If we face a drought as things stand now, we will definitely be forced to load shed on a wider scale.
We need to get more power from Uganda, but the current line does not have the big capacity as we would like. Ethiopia has really supported us.
Then we also have the big issue where disruptions from trees account for about 50 to 70 percent of the outages we face. That is why we are increasingly stepping up efforts to clear trees along our lines. This has helped us to reduce the frequency of outages in some of the regions.
Are you keen to extend your stay at Kenya for a second term?
I have just completed my first year in charge. There are two more to go. So let us wait until the right time.
