The Kenya Electricity Transmission Company (KETRACO) is under increasing scrutiny over financial risks totaling Sh12.97 billion linked to unresolved legal disputes, contractor claims, and unpaid land compensation.
The Public Investments Committee on Commercial Affairs and Energy raised concerns that these liabilities could disrupt the company’s ability to implement critical energy infrastructure projects. The Committee, led by Pokot South MP David Pkosing, met with KETRACO officials to review audited accounts for the financial years 2018/19 to 2022/23.
MPs pressed the company’s Managing Director Dr. John Mativo over the growing liabilities, including disputes with contractors and court cases involving landowners awaiting compensation.
“Should these liabilities materialize, KETRACO could find itself under immense financial strain, affecting its core function of transmitting electricity to homes and businesses across the country,” said Pkosing.
The company attributed a large portion of the financial risk to a terminated contract under the Kenya-Uganda Lessos-Tororo 400kV interconnection project. Although KETRACO assured the committee that these risks are under regular review, MPs questioned the long delays in resolving the issues.
A major concern was the backlog in compensating landowners affected by transmission lines. As of early this year, KETRACO owed Sh3.39 billion in unpaid wayleave compensation. Dr. Mativo said the figure had dropped to Sh1.47 billion by June 2025 due to National Treasury support and collaboration with affected counties and 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,” said Dr. Mativo.
The Committee also raised alarm over delays in completing key transmission projects, including the 220kV and 132kV transmission lines, the Power Transmission System Improvement Project, the Kenya-Tanzania Power Interconnection Project, and the Nile Equatorial Lakes Countries Interconnection Project.
Auditors warned that these delays could escalate project costs and delay electricity access in underserved regions. KETRACO blamed the setbacks on procurement bottlenecks, legal challenges, and the complexity of cross-border projects.
Further concerns emerged over KETRACO’s ongoing billing of Kenya Power for transmission services without a signed contract. While the billing is based on an approved tariff, MPs stressed the need for a formal agreement to avoid potential disputes.
Dr. Mativo acknowledged the gap and said a draft agreement exists, with efforts underway to formalize it soon.
As the meeting concluded, Pkosing urged KETRACO to act on audit recommendations and improve internal controls, stressing that Kenyans expect efficient and transparent use of public funds.
“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.