MPs Grill REREC Over Sh1.7 Billion Irregular Payments

The Rural Electrification and Renewable Energy Corporation (REREC) has come under sharp scrutiny after senior officials were questioned by the Public Investments Committee (PIC) on Commercial Affairs and Energy over a series of audit queries spanning three financial years.

Appearing before the committee at Parliament Buildings, REREC CEO Dr. Rose Mkalama and General Manager of Finance Davis Cheruiyot faced tough questions over alleged financial mismanagement, including the irregular spending of more than Sh1.79 billion on land survey services. The session was chaired by Pokot South MP David Pkosing.

According to the Auditor General’s report, the corporation paid surveyors large sums of money, yet official records at the Directorate of Surveys in Nairobi and regional offices remain incomplete or inaccurate.

MPs raised concern that the maps resulting from these surveys are missing or invalid, questioning the value of the services paid for.

In Kakamega County, the audit highlighted that individuals without legal authority granted wayleaves on land belonging to deceased persons—violating the Law of Succession Act, which prohibits dealings with a deceased’s estate without proper administration.

In her response, Dr. Mkalama acknowledged the issues and outlined steps being taken to address them.

“We have set up a Geospatial Department, a Lands Section, and an Advocacy Unit to enhance internal controls, verify land ownership, and raise public awareness on lawful acquisition of land and wayleaves,” she said.

The committee also questioned REREC’s operations on community land in Turkana and Kilifi counties. In both areas, the corporation started power projects without acquiring mandatory consent from the County Governments, who are the legal custodians of unregistered community lands.

While REREC confirmed that it obtained consent from Turkana County for a project in Lopacho Village, it admitted failing to follow procedure in Kilifi’s Takaye Village. Dr. Mkalama assured MPs that the corporation is correcting the oversight.

The audit also flagged the construction of mini-grid power stations in Wajir, Mandera, Garissa, and Turkana counties on community land that had not been legally secured. This raised red flags over the safety of both public and donor funds.

Dr. Mkalama said the agency is now working with County Governments and communities to fast-track documentation.

“We have received approvals for Part Development Plans at most sites. Cadastral surveys are ongoing, and titling will be completed by 2025/26,” she said.

The committee was also alarmed by the report that REREC owes Sh2.25 billion in trade and other payables, of which Sh1.19 billion was unsupported and lacked proper documentation. Additionally, Sh830 million has been outstanding for more than 90 days.

In another query, MPs raised concern about Sh571 million paid to three surveying firms for work that could not be verified.

The Auditor General found no service orders, contracts, or maps to support the payments—raising questions about possible violations of the Public Procurement and Asset Disposal Act.

Dr. Mkalama admitted to the failures and said disciplinary action had already been taken.

“Following an internal audit, five staff members involved in the irregular payments were dismissed. We have also referred the matter to the Directorate of Criminal Investigations for further action,” she told the committee.

Committee chair David Pkosing expressed disappointment, saying public agencies like REREC must uphold financial integrity.

“This shows clear laxity, or even collusion, at the expense of ordinary Kenyans. When public institutions like REREC falter, it’s rural communities that suffer most,” he said.

Pkosing emphasized that Parliament’s oversight role is not just legal, but also a moral duty.

“We must ensure financial discipline across all public institutions and restore trust in government agencies,” he added.