Deloitte to help Kenya Power with major organisational restructuring project

Big Four accounting and advisory firm Deloitte has won a major project worth nearly Sh 60 million from Kenya power – the government agency responsible for power distribution in the East African country. The project involves restructuring services to optimise the organisational operations.

Kenya Power has been engaged in a number of projects over the last year, including a collaborative project with the United States Agency for International Development (USAID) to add nearly 500 megawatts to its electricity generation capacity over a period of the next six years.

The agency also recently signed a contract with global technology consultancy Indra with the objective of optimising its power supply operations by integrating digital enhancements at every step of distribution. The latest partnership with Deloitte represents an effort to restructure the organisation to match these rapid developments.

However, the new partnership with Deloitte comes under controversial circumstances, particularly as the organisation already implemented a change in structure last year, which led to job losses all the way to the top rungs of the organisation. Kenya Power has not revealed the implications of this new partnership on the jobs. 

The organisation has justified this new move for restructuring by highlighting its need to improve its corporate governance mechanisms, specifically in the domain of customer response. The agency wishes to incorporate penalties for poor service within its organisational structure.

Overall, the move comes after the entity has reported a steady decline in profits over the last financial year, which has been attributed to a rapid increase in overall operation costs. Alongside restructuring efforts, the firm has also looked to obtain loans in order to ease the strain on its finances.

For Deloitte, this represents the latest in a string of government contracts in Kenya over the last year. The firm has been supporting the National Treasury in Kenya with the development of its internal auditing frameworks over the last year, which has been worth just under Sh 47 million.