Friday, 6 June, 2025
Public Debt Committee meets Energy PS over use of government acquired loans between 1st September and 31st December 2024
Parliament BuildingsThursday 5th June, 2025
The National Assembly Committee on Public Debt and Privatization chaired by Hon. Abdi Shurie (Balambala) has met the Energy Principal Secretary Mr. Alex Wachira who briefed them on the use of loans amounting to Kshs 68.65 billion acquired by the government from external bilateral and multilateral creditors between 1st September and 31st December 2024.
During the meeting, Members wanted the PS to provide information on the use of the loans in relation to achievement of the key performance indicators of the projects, absorption rate for each project and the status of the projects.
On 3rd October 2024, the government signed a bilateral loan of Kshs 4.56 billion with the government of France that is intended to finance the construction of the National System Control Centre (NSCC) of the country’s electricity grid to enhance capacity and integrity of power supply across the country.
According to the PS, NSCC is a power infrastructure project being developed KETRACO and the Ministry of Energy and Petroleum, with full financing and technical support from the Government of France and is designed to modernize and automate Kenya's electricity transmission system.
“The country signed a financing agreement with the Agence Francaise de Developpement (AFD) in March 2019 for the construction of National System Control Centre (NSCC) under the Reinforcement of Kenya Transmission Network (RETNET)project. In 2017. the NSCC was estimated to cost Euros 46.6 million. However, the 2023 evaluated and negotiated cost of the winning bidder is Euros 82.5 million. There was a financing gap of Euros 35.9 million,” the PS told the Committee.
On the status of loan appropriation and disbursement, the Members heard that a drawing of Euros 6,798,356.60 has been made so far under the financing from French Republic loan facility representing twenty percent loan disbursement.
Hon. Eli Letipila (Samburu North) also wanted to know if the government had paid any Commitment fee for the loan, however, the PS assured the Members that non had been paid as the loan had been disbursed and was in use of the intended project.