MPs order audit of Ketraco projects delayed for years

MPs have ordered a fresh audit of delayed multibillion-shilling Kenya Electricity Transmission Company projects.

The call came amid concerns that taxpayers' money is tied up in power transmission lines that remain incomplete years after their scheduled completion dates.

The National Assembly's Public Investments Committee on Commercial Affairs and Energy has directed the Office of the Auditor General to undertake an independent verification of all pending projects.

The Pokot South MP David Pkosing-led team wants the auditors to submit a report to Parliament within three months (after adoption of the April report).

The move follows concerns that some projects initiated more than six years ago are still classified as capital work in progress despite consuming billions of shillings in public funds.

In its report tabled before the National Assembly, the committee expressed concern the utility had failed to provide auditors with detailed information on the projects.

Details showing the names of projects, their locations, contract values, amounts paid and their current implementation status were not provided.

"The committee noted some projects started several years ago remain incomplete and continue to be held under capital work in progress," the report states.

Among the projects flagged is the Lessos-Tororo 400KV double circuit transmission line linking Kenya and Uganda, which has remained stalled since 2016 after the contractor abandoned the site when works were only 51 per cent complete.

The project has since become the subject of a Sh9.2 billion arbitral award against Ketraco, exposing taxpayers to further financial liabilities arising from the delay.

Lawmakers also questioned the slow progress of the Kenya Power Transmission System Improvement Project, where sections of the transmission network remain unfinished years after construction began.

According to the committee report, the Mwingi-Wote transmission line is 75 per cent complete while the Lessos-Kabarnet line stands at 95 per cent completion.

Ketraco attributed the delays to the collapse of contractor trading as Jyoti Structures Limited, which was declared bankrupt before completing the works.

The 220KV Turkwel-Ortum-Kitale substations also suffered delays after the contractor was placed under liquidation by Indian courts.

Although the projects have since been completed, MPs noted the delays significantly affected implementation timelines and denied consumers the expected benefits.

The multinational Kenya-Tanzania Power Interconnection Project, completed in 2024, was also delivered behind schedule.

MPs also noted sections of the Nairobi Ring Transmission Line experienced delays due to late handover of project sites and disruptions caused by the Covid-19 pandemic.

Particular attention was drawn to the Nanyuki-Isiolo-Meru transmission line where an 800-metre section remains incomplete despite compensation having already been paid to the affected landowner.

The committee faulted Ketraco management over the matter and demanded immediate action to resolve the impasse.

"The accounting officer was reprimanded over the failure to complete the remaining section despite compensation having been settled," the report states.

Ketraco management blamed the delays on prolonged acquisition of wayleave corridors, saying negotiations with landowners delayed and sometimes ended up in court.

The company also cited difficult terrain in some project areas, delayed release of funds by the National Treasury, contractor troubles and disputes over land ownership as causing the delays.

However, MPs said many of the challenges could have been anticipated and addressed earlier to avoid escalating costs and prolonged implementation periods.

The committee directed Ketraco to fast-track completion of all pending projects to enable them to be capitalised in the company's books and begin delivering benefits to electricity consumers.

It further ordered the accounting officer to submit detailed status reports on all pending projects to the Auditor General for the desired independent verification.

In addition, the committee instructed Ketraco to ensure wayleave rights are fully acquired before contracts are awarded in future projects to minimise litigation and implementation delays.

MPs want the Auditor General to keep the matter under review in future audit cycles and provide updates on the implementation of the committee's recommendations.

The delays raise fresh questions over value for money in public infrastructure projects, particularly in the energy sector where transmission investments are expected to strengthen the national grid.

President William Ruto’s administration has been under pressure to improve the reliability of electricity supply and lower power costs.

INSTANT ANALYSIS

With some of the projects dating back to 2015 and others remaining incomplete nearly 10 years later, MPs warned that Kenyans are yet to enjoy the full benefits of multibillion-shilling investments meant to expand access to affordable electricity.