Kenya Power Facing Auction by KRA Over Due Taxes
Kenya Power is set to be auctioned by the Kenya Revenue Authority (KRA) over unpaid taxes relating to transformers imported by the struggling power distributor.
Gathogo Wanjiru 
According to a gazette notice on Friday, July 9, Kenya Revenue Authority (KRA) gave Kenya Power an ultimatum of 30 days to clear transformers imported seven years ago, or else be auctioned.
“Unless the under-mentioned goods are entered and removed from the Customs Warehouse within thirty (30) days from the date of this notice, they will be sold by public auction on August 12, 2021,” said KRA.
The new development portrays a picture of a struggling firm, whose asset base was Ksh44.2 billion as compared to liabilities worth Ksh115.2 billion as of June 30, 2019. This means Kenya Power is operating on a deficit of over Ksh71 billion.
According to the auditor-general report, Kenya Power has remained in a negative working capital position for the past three consecutive years.
“These conditions indicate that a material uncertainty exists, which may cast significant doubt on the company’s ability to continue as a going concern,” said the Auditor General.
However, the lighting company reported revenues of Ksh133.18 billion, an 18.45% growth compared to Ksh112.43 billion generated in the year ended June 2019.
