For instance, KenGen is in arrears of Ksh.23.9 billion, while Kenya Power has understated its payables to it by Ksh.741.6 million at Ksh.23.1 billion.
While this is happening, KERACO’s receivables have been understated by Ksh.75.6 million, from Ksh.4.568 billion to Ksh.4.643 billion, a difference of Ksh.75.6 million.
The audit also highlighted Ksh.23 billion in capital work in progress balances, in addition to the disputed balances.
Kenya Power has contested payments totaling Ksh.2.3 billion to partners like KenGen, KETRACO, and REREC.
Kenya Power’s net payables and receivables as reported by the utility differ from the balances confirmed by the three State entities, as revealed by the Auditor General’s audit of the utility’s books.
To give just one example, KenGen is owed Ksh.23.9 billion by Kenya Power, but the latter has only reported Ksh.23.1 billion in payables.
Meanwhile, KERACO’s receivables were understated by Ksh.75.6 million, from Ksh.4.568 billion to Ksh.4.643 billion, despite the latter being the confirmed balance.
Meanwhile, Kenya Power has underestimated its KETRACO receivables by Ksh.12.4 million, bringing the total understatement to Ksh.1.678 billion.
However, REREC has recorded confirmed receivables from Kenya Power (payable by Kenya Power) of Ksh.10.7 billion, despite the utility’s estimated balance of Ksh.12.2 billion.
Kenya Power received a qualified opinion from the Auditor General as a result of the discrepancies, which means the utility generally gave a fair assessment of its financials with the exception of the areas the report called out for special attention.
In addition to the contested balances, the audit also highlighted Ksh.23 billion in capital work in progress.
Costs associated with street lighting projects have been recorded in Kenya Power’s books, but the resulting assets have not been included in the company’s assets.
