Power producer Kenya Electricity Generating Company (KenGen) has revealed that its former CEO Albert Mugo was contracted on a Sh2.2 million monthly salary, making him one of the top earning executives among State corporation bosses.
KenGen revealed to shareholders this week that Mr Mugo’s pay rose 27 per cent in the year to June to Sh23.7 million annually, translating to an average monthly pay of Sh1.97 million.
But the former CEO earned extra benefit including leave allowance of Sh2.9 million, pushing his total annual pay to Sh26.6 million or Sh2.2 million monthly.
This made him the top earner among CEOs of State-owned firms in the electricity sector given his monthly pay was double that offered to former Kenya Power managing director Ben Chumo, who earned of Sh1 million monthly.
Mr Mugo (above) retired in August and was replaced by Rebecca Miano –the first woman to occupy the seat.
The Nairobi bourse-listed company is 70 per cent owned by the government and recorded a 34 per cent growth in net profit of Sh9.05 billion in the year ended June, from Sh6.7 billion a year earlier.
KenGen, however, trails the pay package of bigger firms listed on the Nairobi Securities Exchange (NSE).
Safaricom’s Bob Collymore and KCB’s Joshua Oigara in December 2015, announced they were on a monthly pay of Sh9 million and Sh4.9 million, adding up to Sh108 million and Sh58.8 million annually respectively.
The electricity producer has a capacity of 1,631 megawatts, or 70 per cent of Kenya’s total power capacity.
Its energy sources include hydropower (818 megawatts), geothermal (534 megawatts), wind (25 megawatts) and 254 megawatts for thermal sources.
KenGen last week announced plans to create a subsidiary, KenGen Energy Services, which will handle non-generation business, as a way to diversify revenue streams.