MPs say Ksh30B misused in rural power projects, demand answers
By Cynthia Lodite, August 14, 2025The members of the National Assembly Public Investments Committee on Commercial Affairs have revealed that Ksh30bn allocated for rural power projects was misused.
Following a report released by the National Assembly on Thursday, August 14, 2025, the committee has called for answers for a long-standing government receivable that is owed to Kenya Power, which the committee reveals is Ksh30.9B as of June 2024.
“The Public Investments Committee on Commercial Affairs and Energy (PIC-CA&E) has queried the long-outstanding government receivables owed to Kenya Power and Lighting PLC (KPLC), which stood at Ksh30.9 billion as of June 2024,” the National Assembly noted.
According to the National Assembly committees, the high-stakes Energy Sector Round-Table meeting brought together key stakeholders, including Permanent Secretaries for the National Treasury and Energy and Petroleum, the Director-General of the Energy and Petroleum Regulatory Authority (EPRA), and the heads of KPLC, the Rural Electrification and Renewable Energy Corporation (REREC), and the Kenya Electricity Transmission Company.
Similarly, according to the Auditor-General’s reports for the 2018/2019 to 2022/2023 financial years, persistent load-shedding, largely affecting rural and off-grid areas, has undermined efforts to deliver sustainable, reliable, and affordable energy, frustrating socio-economic development.
EPRA tariff recovery plan
The National Assembly has further added that the National Treasury Principal Secretary, Chris Kiptoo, told MPs that the Rural Electrification Scheme (RES) has seen its deficit balloon from Ksh9.2 billion in 2008 to Ksh30.9 billion in 2024, with the figure already reduced to Ksh25.33 billion by June 2024.
At the time of the meeting, to clear the debt, the PS proposed increasing exchequer allocations from Ksh261 million to Ksh1.661 billion in the 2025/2026 budget, coupled with a five-year amortisation plan via EPRA tariff recoveries, aiming to cut the deficit by Ksh7.3 billion in the next fiscal year.
The Committee, chaired by Pokot South MP David Pkosing, raised concerns over 56 mini-grid stations operated by KPLC, 30 of them hybrid diesel/solar, which are plagued by non-functional lithium batteries.
The National Assembly committee has revealed that REREC would take over mini-grid management and replace faulty infrastructure at an estimated cost of Ksh5.2 billion over two years.
During the session, members expressed strong reservations over the Treasury’s proposal to reallocate Ksh1 billion from public utilities to offset the Rural Electrification Scheme debt.
On the other hand, Soyi MP David Kiplagat insisted the project’s viability should not be measured purely on commercial terms.
“Electricity is a mandatory social need, just like education, security, and healthcare. Let us explore a modest levy on fuel or diesel to raise the funds without undermining critical facilities.”
Committee Chair Pkosing emphasised that the immediate priority was restoring the 13 non-functional mini-grids, noting that REREC’s battery replacement programme, costing Ksh5.2 billion, had clear funding timelines.
The Committee has also put the Kenya Electricity Generating Company PLC (KenGen) management on notice over alleged irregular recruitment practices and failure to adhere to public service values.