The Kenya Electricity Transmission Company (KETRACO) is facing intense scrutiny from Parliament over mounting financial liabilities, stalled energy projects, and failure to adequately compensate landowners affected by transmission infrastructure.
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 state corporation’s ballooning obligations, now nearing Sh13 billion. Lawmakers warned that the unresolved issues could severely hinder electricity transmission and derail national development goals.
“If these liabilities materialise, KETRACO will be under immense financial strain. It could paralyse operations and disrupt power supply to homes and industries,” cautioned Committee Chair David Pkosing.
A major portion of the liability stems from the terminated Kenya-Uganda Lessos-Tororo 400kV interconnection project, a key initiative aimed at boosting regional power trade. MPs accused the company of inaction despite repeated audit findings.
Of particular concern was KETRACO’s sluggish compensation of landowners whose properties were impacted by power lines. Although the amount owed has been reduced from Sh3.39 billion to Sh1.47 billion as of June 2025, legislators criticised the company for delays, citing bureaucratic hurdles and legal wrangles.
“We’re committed to settling all valid claims,” Mativo said, citing funding from the National Treasury and cooperation with counties. “However, some delays stem from land ownership disputes and documentation issues.”
MPs were unmoved, insisting that the excuses should not be used to deny rightful compensation to affected citizens.
Auditor General reports tabled before the Committee also highlighted that four major transmission projects are running behind schedule, raising alarms over rising costs and energy access setbacks in underserved regions. KETRACO attributed the delays to procurement inefficiencies, legal challenges, and complexities of managing cross-border infrastructure.
In another revelation, KETRACO admitted to billing Kenya Power and Lighting Company (KPLC) for transmission services without a signed contract. Although the charges align with tariffs approved by the Energy and Petroleum Regulatory Authority (EPRA), MPs questioned the legal basis of the arrangement.
“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 lawmakers that a draft agreement exists and finalising the deal is now a priority.
As the session concluded, Chairperson Pkosing emphasised the need for transparency, accountability, and faster project execution. “Kenyans deserve reliable power and responsible use of public resources. Every shilling allocated to KETRACO must result in tangible progress,” he said.
The Committee is expected to table a comprehensive report in Parliament with recommendations aimed at reforming KETRACO, expediting projects, and improving governance in the energy sector.
Written By Rodney Mbua
