Several Kenyans are at risk of missing out on electricity connections to their homes and businesses due to financial challenges facing the Kenya Electricity Transmission Company (KETRACO).
A recent report indicates that KETRACO is under mounting pressure from financial risks amounting to Ksh12.97 billion, stemming from unresolved court cases, contractor claims and pending compensation for land use.
Members of the Public Investments Committee on Energy on Tuesday, July 29, warned that these challenges could significantly undermine the company’s ability to deliver vital energy infrastructure.
This followed a session in which the Committee, chaired by Pokot South MP David Pkosing, met with KETRACO’s leadership to scrutinise audited accounts covering the financial years 2018/19 to 2022/23.
At the centre of the meeting was the growing concern over contingent liabilities, especially contractor disputes and legal battles involving wayleave compensation that could balloon into costly obligations if not addressed.
“Should these liabilities materialise, KETRACO could find itself under immense financial strain, affecting its core function of transmitting electricity to homes and businesses across the country,” Pkosing cautioned.
The Company traced much of the financial exposure to a terminated contract under the Kenya-Uganda Lessos-Tororo 400kV interconnection project, part of the larger initiative to integrate regional power grids.
Although KETRACO reassured the Committee that these risks are reviewed frequently, the lawmakers expressed concern over the prolonged nature of the unresolved issues.
Also under sharp focus was the company’s failure to compensate landowners affected by power transmission projects. As of earlier this year, KETRACO owed Ksh3.39 billion in unpaid wayleave compensation.
Management cited delays in exchequer funding, lengthy negotiations with landowners and legal disputes as the main reasons behind the backlog.
“Our progress is constrained by budget limitations and, in some cases, unresolved ownership or documentation issues. But we remain committed to ensuring every genuine claim is settled fairly,” Mativo said.
MPs also expressed alarm over significant delays in completing four major transmission projects: the 220kV and 132kV transmission lines and substations project, the Power Transmission System Improvement Project, the Kenya–Tanzania Power Interconnection Project, and the Kenyan section of the Nile Equatorial Lakes Countries Interconnection Project.
According to audit reports, delays in completing these projects risk inflating costs and prolonging electricity shortages, particularly in regions relying on expanded power access for development.
