The Kenya Electricity Transmission Company (KETRACO) Managing Director, John Mativo, was put on the spot by Members of Parliament over billions of shillings lost through arbitration and irregular contracts, as well as delayed compensation of landowners.
The MPs, sitting in the Public Investments Committee on Commercial Affairs and Energy (PIC-CA&E), chaired by Pokot South MP David Pkosing, were reviewing the company’s audited accounts from the 2018/19 to 2022/23 financial years.
At the centre of the inquiry is a Sh4.5 billion arbitration award issued in favour of Spanish company Inabensa after KETRACO terminated a 2016 contract to build a 132km 400kV power line between Lessos (Kenya) and Tororo (Uganda). The award has been upheld by all courts, including the Supreme Court.
“We felt the decision was against public interest and we appealed, but the courts ruled against us,” Mativo told the MPs. He added that Treasury is yet to finance the stalled project.
However, MPs questioned why the project remains incomplete nine years later.
“Billions have been paid, but there is no power flowing to Uganda. How do we explain this to Kenyans?” asked MP Pkosing.
The Committee also raised questions about irregularities flagged in the Loiyangalani–Suswa transmission project.
A 2021 audit revealed payments made to a contractor who later went bankrupt, procurement outside the annual plan, uncertified works worth Sh1.5 billion, and Sh26.2 million used to buy materials without valuation reports.
Mativo said that due diligence was done before the contractor collapsed and that the National Treasury later approved a new contractor. He added that the project has been operational since 2018.
Another major concern was KETRACO’s outstanding wayleave compensation owed to landowners, totaling Sh2.7 billion, with some pending for years.
“We have reduced the pending amount to Sh1.47 billion as of June 2025,” the MD said, blaming delays on limited Treasury funding and land ownership disputes.
The MPs also noted that the company faces Sh6.7 billion in contingent liabilities from ongoing court cases and claims.
“Your books look like a risk register, full of court battles, unpaid bills, and unfinished projects,” said Pkosing. “Kenyans want results, not excuses.”
Mativo said KETRACO is working with other agencies to solve the disputes and complete projects.
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