MPs probe ten-year idle geothermal steam amid high electricity costs

Members of Parliament have raised serious concerns about a geothermal steam resource developed by the Geothermal Development Company (GDC) a decade ago. Despite its capacity to generate 300 megawatts of electricity, the steam remains unused, while Kenyans face high electricity costs.

The issue came to light during a meeting of the National Assembly’s Public Investments Committee on Commercial Affairs, which was reviewing the GDC’s audited accounts for the financial year 2020/2021.

GDC is tasked with developing steam fields and selling geothermal steam for electricity generation to Kenya Electricity Generating Company PLC (KenGen) and private investors.

The Committee, chaired by Pokot South Member of Parliament David Pkosing, wants to discover why the steam plant has remained dormant for a decade.

“It is a shame to the people of Kenya that they have ready steam which can produce electricity that can serve the entire country even at peak hours yet it has never been utilised. The country’s peak demand for power is 2,200 megawatts yet here we are leaving almost a third of the demand remaining idle. Why has this well taken this long to be developed?” Pkosing posed.

According to a report by Auditor-General Nancy Gathungu, GDC owns seven geothermal drilling rigs valued at Sh7.7 billion. However, an examination of the company’s records revealed that four rigs had not been used in the past four financial years.

“One of the rigs was acquired and used to drill two wells in 2016 and had been idling ever since,” Gathungu says in the report.

The report further noted that while each rig could drill one standard well in six months, they have averaged less than one well per year.

GDC officials defended themselves, claiming that they had no choice but to drill the well because their mandate only allows for steam extraction.

After completing the wells, GDC said it is expected to enter into arrangements with Kenya Electricity Generation Company (KenGen) to develop the facilities and sell the power to KPLC.

The Committee has now summoned newly appointed Energy Cabinet Secretary Opiyo Wandayi to appear before them next week to explain why the steam has remained unused for the past 10 years.

“We are not blaming GDC for this, they have done their part. It's Wandayi who should now explain to us why the steam has been idle for the last 10 years yet we Kenyans are buying power expensively,” Pkosing said.

This will be Wandayi's first appearance in Parliament since assuming his new position. The committee stated that GDC officials should accompany him. Representatives from the Auditor General, Treasury PS Chris Kiptoo, his Energy counterpart Alex Wachira, KRA Commissioner General Humphrey Wattanga, Kenya Power MP Joseph Siror, and Kengen CEO Peter Njenga are also expected.