NAIROBI, Kenya – The Kenya Electricity Transmission Company (KETRACO) is under mounting pressure from Parliament over massive delays in key energy projects, rising legal and financial liabilities, and failure to settle billions in land compensation claims.
Appearing before the National Assembly’s Public Investments Committee on Commercial Affairs and Energy on Thursday, KETRACO Managing Director John Mativo was grilled over the company’s ballooning obligations, now nearing Sh13 billion.
The Committee warned that the unresolved issues risk crippling the state corporation’s ability to transmit electricity reliably and could stall vital economic development.
“If these liabilities materialise, KETRACO will be under immense financial strain. It could paralyse operations and disrupt power supply to homes and industries,” said Committee Chair David Pkosing.
Key Concerns: Terminated Contracts and Unpaid Landowners
A significant chunk of the liabilities stems from the terminated Kenya-Uganda Lessos-Tororo 400kV interconnection project, designed to enhance regional power trade.
MPs accused the company of dragging its feet despite multiple internal audits.
Lawmakers also raised concern over KETRACO’s long-standing failure to compensate landowners whose properties were affected by transmission lines.
Although the initial figure stood at Sh3.39 billion, the company claims it has reduced the amount to Sh1.47 billion as of June 2025.
Mativo attributed the progress to funding support from the National Treasury and cooperation with county governments and affected families.
“We’re committed to settling all valid claims, but we face budgetary constraints and some disputes over land ownership and documentation,” he said.
MPs, however, dismissed the explanations, insisting that bureaucratic delays and legal wrangles cannot be used to deny citizens their rightful dues.
Delayed Power Projects Raise Alarm
Auditor General reports presented to the Committee revealed that four major transmission projects are significantly behind schedule, raising fears of cost overruns and power shortages in underserved regions.
The delayed projects include:
- 220kV and 132kV transmission lines and substations
- Power Transmission System Improvement Project
- Kenya-Tanzania Power Interconnection
- Kenya’s segment of the Nile Equatorial Lakes Countries project
KETRACO blamed the delays on procurement issues, legal setbacks, and the challenges of coordinating multinational infrastructure.
The Committee urged the company to fast-track pending works and address existing bottlenecks to avoid further strain on Kenya’s power supply system.
No Contract with Kenya Power
In a separate revelation, KETRACO admitted it has been billing the Kenya Power and Lighting Company (KPLC) for transmission services without a formal contract.
While Mativo said the billing follows tariffs approved by the Energy and Petroleum Regulatory Authority (EPRA), MPs raised red flags over the lack of a signed agreement.
“You cannot handle billions of public funds based on drafts and goodwill. A binding contract is not optional,” said Vihiga MP Beatrice Adagala.
Mativo assured the Committee that a draft remittance agreement exists and finalising the deal with KPLC is now a top priority.
Committee Demands Accountability and Results
As the session ended, Pkosing underscored the importance of implementing audit recommendations and restoring public trust in KETRACO’s operations.
“Kenyans deserve power in their homes, energy in their industries, and transparency in how their taxes are spent. Every shilling allocated to KETRACO must translate into real progress,” he said.
The Committee is expected to table a detailed report in Parliament, outlining recommendations to enhance transparency, speed up project delivery, and strengthen financial discipline in the energy sector.
