MPs grill KETRACO over delayed power projects, pending bills and unpaid compensation claims

The Kenya Electricity Transmission Company is under intense scrutiny from MPs over delays in key power projects, massive pending liabilities, and failure to settle compensation claims amounting to billions of shillings.

The National Assembly’s Public Investments Committee on Commercial Affairs and Energy warned that the company’s growing financial exposure could derail power transmission and hurt public service delivery.

Appearing before the Committee on Thursday, KETRACO’s Managing Director, John Mativo, was questioned over court cases, contractor claims, and unpaid wayleave compensation, all of which add up to nearly Sh13 billion in potential legal and financial obligations.

Committee Chair David Pkosing said the liabilities, if not addressed, could paralyse the company’s operations.

“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,” he said.

A large portion of the liabilities was linked to the terminated contract for the Kenya-Uganda Lessos-Tororo 400kV power line, a project meant to strengthen regional power integration. MPs questioned the company's slow pace in resolving the matter, despite regular internal reviews.

Also questioned was the long-standing failure to compensate landowners affected by transmission lines. KETRACO initially owed Sh3.39 billion but said the amount had reduced to Sh1.47 billion by June 2025.

Mativo said this was due to support from the National Treasury and cooperation with counties and affected families.

“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 told MPs.

However, legislators remained unsatisfied and demanded urgent reforms, warning that budget delays and legal disputes cannot be used as excuses to deny citizens their rights.

Audit reports presented during the session revealed that four major power transmission projects are behind schedule, raising fears of cost overruns and continued electricity shortages in regions relying on improved access.

The stalled projects include the 220kV and 132kV lines and substations, the Power Transmission System Improvement Project, the Kenya-Tanzania interconnection, and Kenya’s section of the Nile Equatorial Lakes Countries project.

KETRACO blamed the delays on procurement bottlenecks, legal challenges, and the complexity of multinational infrastructure coordination. The Committee urged the company to resolve these barriers and complete the projects without further delay.

In another revelation, KETRACO admitted to billing the Kenya Power and Lighting Company for transmission services without a signed contract. Although the rates are based on approved tariffs, MPs said the lack of a formal agreement poses serious risks.

“We cannot rely on drafts and good faith when handling billions in public resources. A binding agreement is non-negotiable,” said Vihiga MP Beatrice Adagala.

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Mativo said a draft remittance agreement exists and the receivables are handled under internal policy, but confirmed that finalising the deal is now a top priority.

As the session concluded, Pkosing emphasised the need for strict compliance and implementation of audit recommendations, saying KETRACO must safeguard public funds and deliver results.

“Our duty is to ensure public funds are put to good use. Kenyans deserve efficient services, and every shilling allocated to KETRACO must result in tangible progress—lights in homes, power in industries, and growth in our economy,” he said.

The Committee is expected to submit its report to Parliament with firm proposals for accountability and improved performance in Kenya’s energy sector.