Report of the Auditor-General Report of the Auditor-General Report of the Auditor-General Report of the Auditor-General Report of the Auditor-General Report of the Auditor-General Report of the Auditor-General
The Kenya Power and Lighting Company Limited - Annual Report and Financial Statements 2016/2017 I Page 1 OUR VISION Providing world-class power that delights our customers By striving to provide world-class products and services, we bring a sense of optimism and delight to our customers - working together towards a brighter future for Kenya
0UR MISSION Powering people for better lives By becoming the preferred energy solution for businesses and individuals, we empower our customers to achieve more and reach their full potential
Page 2 I The Kenya Power and Lighting CompanyAlign. Limited Grow. - AnnualTransform. Report and Financial Statements 2016/2017 Report of the Auditor-General
CORE VALUES We put our customers first
as they matter most Report of the Auditor-General
We work together as one team to achieve our goals
We are passionate
about powering the nation Report of the Auditor-General
We believe in integrity and delivering on our promises
We strive for excellence Report of the Auditor-General in all that we do Report of the Auditor-General Report of the Auditor-General Report of the Auditor-General
The Kenya Power and Lighting CompanyAlign. Limited Grow. - Annual Transform. Report and Financial Statements 2016/2017 I Page 1 ABOUT THIS REPORT
This is our report to shareholders for the trading (Mwongozo Code), the Capital Markets Act Cap period ended 30th June 2017 to be adopted at the 485A as well as global best practice. 96th Annual General Meeting of the Company. The report is prepared under the direction of the Board This report contains highlights on our trading of Directors who are accountable for veracity and performance, strategic focus areas in the medium completeness of its content. term and operational performance during the year. In addition, the report articulates our corporate In preparation of this report, the Board seeks governance framework and commitment to to provide an objective view of the business sustainability including details of corporate social performance and disclosure of any material matters investment initiatives undertaken in the period. for consideration by shareholders. The content development process is guided by legal and Feedback regulatory requirements including the Companies We appreciate your feedback on this report for Act 2015, International Financial Reporting improvement in future reporting. Please forward Standards (IFRS), Public Audit Act 2015, the Code suggestions to [email protected]. of Corporate Governance for State Corporations
Page 2 I The Kenya Power and Lighting Company Limited - Annual Report and Financial Statements 2016/2017 CONTENTS
ABOUT THIS REPORT ...... 2 BUSINESS HIGHLIGHTS...... 4 CORPORATE INFORMATION ...... 6 DIRECTORS’ BIOGRAPHIES 2017 ...... 7 EXECUTIVE MANAGEMENT ...... 12 REGIONAL MANAGERS ...... 14 NOTICE OF ANNUAL GENERAL MEETING ...... 16 CHAIRMAN’S STATEMENT ...... 21 MANAGING DIRECTOR AND CEO’S STATEMENT ...... 28 STRATEGIC FOCUS ...... 36 OPERATIONAL PERFORMANCE ...... 41 SUSTAINABILITY REPORTING ...... 60 CORPORATE GOVERNANCE REPORT ...... 64 CORPORATE SOCIAL INVESTMENT REPORT ...... 92 DIRECTORS’ REPORT ...... 100 DIRECTORS’ REMUNERATION REPORT ...... 101 STATEMENT OF DIRECTORS’ RESPONSIBILITIES ...... 104 REPORT OF THE AUDITOR-GENERAL ON THE FINANCIAL STATEMENTS .... 105 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ...111 STATEMENT OF FINANCIAL POSITION...... 112 STATEMENT OF CHANGES IN EQUITY ...... 113 STATEMENT OF CASH FLOWS ...... 114 NOTES ...... 115 TEN YEAR FINANCIAL AND STATISTICAL RECORDS ...... 176 STATISTICAL TABLES ...... 179 PROXY FORM ...... 195
The Kenya Power and Lighting Company Limited - Annual Report and Financial Statements 2016/2017 I Page 3 BU