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Audit Reveals Ketraco Owes Landowners Sh4 Billion for Power Projects

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NAIROBI, Kenya – Thousands of Kenyans whose land was acquired for major electricity transmission projects are still waiting for compensation, with a new audit revealing that the Kenya Electricity Transmission Company (Ketraco) has yet to clear more than Sh4 billion in payments.

According to a forensic audit presented in Parliament, Ketraco had not settled Sh4,034,962,691 in wayleave compensation as of June 2023, despite receiving billions in donor funding to implement the projects.

The unpaid claims stem from seven high-profile transmission projects, including the Ethiopia-Kenya line, Kenya-Tanzania line, Kenya-Uganda line, the Nairobi Ring Road line, and others in Machakos, Turkwel, and Olkaria.

Auditor-General Nancy Gathungu told lawmakers that the claims cover land, crops, and structures affected by construction.

While Sh12.9 billion had already been disbursed, the outstanding balance continues to weigh heavily on affected families.

For example, the Ethiopia-Kenya line still has Sh314.3 million pending out of Sh2.6 billion in total claims.

The Turkwel-Ortum-Kitale project has the highest outstanding bill at Sh972.6 million, while the Kenya-Tanzania line has Sh321.8 million unpaid.

The Nairobi Ring Project, one of the capital’s flagship power upgrades, has Sh149.4 million pending from its Sh2.2 billion budget.

“The audit identified persistent delays in compensating landowners, which raises questions about the company’s financial management and its engagement with affected communities,” Gathungu said.

The delays have left thousands of families in limbo, some unable to use or benefit from their land years after it was taken over for the projects.

Community leaders in affected regions have long decried the slow pace of compensation, warning that the disputes could escalate if not resolved.

Ketraco’s transmission lines are seen as critical to Kenya’s energy security and regional power trade, but the audit suggests the projects are being undermined by poor accountability and inadequate compensation mechanisms.

Parliament is expected to debate the findings in the coming weeks, with pressure mounting on Ketraco to fast-track payments to landowners and restore public trust.

Anthony Kinyua
Anthony Kinyua
Anthony Kinyua brings a unique blend of analytical and creative skills to his role as a storyteller. He is known for his attention to detail, mastery of storytelling techniques, and dedication to high-quality content.

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