AFDB BANS KENYA POWER CONTRACTOR OVER GRAFT

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The African Development Bank Group (AfDB) has banned Kenya-based CP Power East Africa Limited and its part-owner Dawit Wondwossen from its projects. The debarment will take effect from November 4 and last for two years.

The company was barred after the it was found to have engaged in fraudulent practices in Kenya and Uganda. This came after an investigation was conducted by the Bank’s Office of Integrity and Anti-Corruption established that CP Power East Africa Limited, and Mr Dawit Wondwossen, engaged in fraudulent practices in the context of two separate tenders.

Kenya Power’s plan for subsidized connection of homes to the national grid dubbed The Last Mile Project aims at extending the low voltage system throughout the country so that counties with low electricity penetration rates benefit the most. The latest phase of the project was expected to connect about 300,000 customers pushing the household with access to electricity to above 1.5 million.

International financial institutions mostly owned and financed by governments, have been keen to curb corruption in their projects which runs into billions of dollars annually. CP Power East Africa adds to the list of Kenyan casualties that have been banned by international institutions over unethical practices. Almost 20 Kenya-based companies have been blacklisted by the World Bank and the African Development Bank (AfDB) in less than two years over fraud and quality concerns in projects funded by the multilateral lenders.

The move by AFDB reveals the economic and development retrogression the country will suffer due to the effects of corruption in the country. The anti-corruption taskforce should move in speed to investigate and prosecute the culprits involved in the scandal.

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