Kenya Power and Lighting Company (KPLC) was on the spot Wednesday as Members of Parliament raised serious concerns over its ballooning debts, high electricity prices, weak infrastructure, and IT security risks.
The issues came up during a session of the Public Investments Committee on Commercial Affairs and Energy, chaired by Pokot South MP David Pkosing.
Lawmakers were examining KPLC’s audited accounts from 2018/19 to 2022/23 and painted a picture of a company struggling with deep financial and operational challenges.
According to the Auditor-General’s report for the year ending June 30, 2019, the company’s liabilities stood at Sh115.2 billion, while assets were only Sh44.2 billion. This left KPLC with a negative working capital of Sh71 billion — the third straight year in deficit, raising questions about its financial stability.
KPLC CEO Dr. Joseph Siror blamed the situation on massive infrastructure projects implemented between 2014 and 2018 under the government’s universal electrification agenda and the 5,000MW power plan.
“Most of the funds came from commercial loans meant for the short term, yet the projects were long term. Delayed tariff reviews and system losses worsened the cash flow,” Siror told the committee.
He said the company had put in place several recovery strategies including cutting power losses by 0.5% each year, boosting collections, rolling out smart meters, and holding back on non-essential capital projects. The company also engaged the Energy and Petroleum Regulatory Authority (EPRA) to help recover Sh11.9 billion from the Rural Electrification Scheme.
“We are making steady progress. Our negative working capital improved from Sh75 billion in 2020 to Sh27 billion in 2024. As of June 2024, we posted a Sh30 billion after-tax profit,” said Dr. Siror.
But MPs were not convinced. They raised alarm over serious IT weaknesses flagged by the Auditor-General, such as delayed system log reviews, poor password controls, and unrestricted super-user access in three of the four core systems.
KPLC’s ICT team said it had deployed IBM QRadar, Microsoft Defender, and Oracle audit trails to improve security. However, the Committee Chairman was still concerned.
“Unrestricted super-user access is a ticking time bomb. It opens the door to fraud and cyberattacks. These gaps must be fixed immediately,” said Pkosing.
The committee also questioned a Sh55.9 million direct contract awarded to an advertising firm in 2018 without competitive bidding. Management claimed it was a short-term solution, but the Auditor-General termed it a violation of procurement laws.
“This smells of vested interests. Public procurement must be transparent,” said Pkosing.
MPs also raised questions about high electricity tariffs and ongoing blackouts. Dr. Siror defended the pricing model as “cost-reflective,” saying it was designed to attract investment in power generation. He added that tariffs had dropped by Sh2 per unit in the last three years due to reforms.
Still, committee members questioned why electricity remained unaffordable despite falling technology costs. The CEO blamed Independent Power Producers (IPPs), accusing them of operating under secretive contracts.
“These companies are owned by powerful individuals. We need to know who is making profits while ordinary Kenyans suffer,” said Siror.
The discussion heated up when Wajir East MP Yusuf raised concerns about a diesel generator in his constituency that hasn’t worked since it was installed three years ago.
“KPLC says it has no batteries or fuel, yet residents continue to receive bills. How can you charge people for power they never get?” asked Yusuf.
KPLC admitted the generator was meant to support solar power but failed due to logistical problems. MPs branded the project a “white elephant” and demanded accountability.
“This is inexcusable. It points to a bigger systemic failure. We will not allow taxpayers’ money to be wasted,” said Pkosing.
To address these concerns, the committee announced it would visit Wajir and other counties with stalled or struggling energy projects.
“This is not politics — this is about justice for Kenyans. Electricity is a basic need, not a money-making machine for a few connected people. Kenyans deserve answers, transparency, and value for money,” said the committee chair.
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