Members of the Public Debt and Privatization Committee have demanded answers from Energy Principal Secretary Alex Wachira over a sharp rise in the cost of building the National System Control Centre (NSCC) electricity grid.
The project’s budget has been revised from the initial EUR 46.6 million to EUR 82.5 million — an increase of EUR 35.9 million, which lawmakers say is nearly 100 per cent.
Appearing before the committee on Thursday, August 7, 2025, PS Wachira was pressed to explain the jump in costs.
“There is a very large variation between the initial amount and the current one. Adding EUR 35.9 million to the initial amount is almost equivalent to a 100 per cent increase, and whatever you have submitted does not justify this. We need a solid reason for it,” said Committee Chairperson and Balambala MP Abdi Shurie.
In his defence, Wachira said the additional funds, sourced from the French Government Treasury, were necessary to complete the project after a funding gap emerged between the budget at bid negotiation (EUR 46.6 million) and the actual cost (EUR 82.5 million).
He attributed the increase to several factors, including a 29 per cent inflation rate between 2019 and 2023, the impact of the Covid-19 pandemic on global markets, and a shortened construction timeline from 42–48 months to 36 months to meet sector needs.
Wachira also said the budget was revised upwards following design changes and additional requirements such as doubling the floor area, improving wastewater management, enhancing physical security, upgrading infection control measures, and raising the standard for internal finishes.
The PS assured MPs there would be value for money once the project — which has already broken ground — is completed.
The committee has directed Wachira and his team to provide a detailed report justifying the cost increase before making a final decision.
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