Tuesday, 15 July, 2025
Audit Committee grill KPLC over financial irregularities, dormant projects, board overspending, and gaps in last mile implementation
Parliament Buildings Thursday, 10th July, 2025
Kenya Power and Lighting Company PLC (KPLC) came under intense scrutiny on Thursday as the Public Investments Committee (PIC) on Commercial Affairs and Energy, chaired by Pokot South MP Hon. David Pkosing, examined its financial operations for the fiscal years 2018/19 to 2022/23.
Appearing for the second consecutive day, KPLC officials, led by Managing Director and CEO Dr. Eng. Joseph Siror, faced tough questions over financial mismanagement, governance issues, and a trail of dormant projects.
The revelations, drawn from audit reports by the Auditor-General, have raised alarm over the integrity and efficiency of the country's sole electricity distributor.
Among the questionable findings was the Kshs. 10.2 billion listed under "Network Management Expenses." Within this amount, Kshs. 205.5 million was attributed to impairment losses from capital work-in-progress (WIP), projects that had seen no activity in over three years.
Even more troubling was the Kshs. 159.2 million lost to fraudulent contractor payments, cases that are currently in court, and involve former employees.
“A total of 9,127 projects have stalled across our regional offices since June 2018.The reasons vary from land ownership and wayleave disputes to incomplete customer requirements but we acknowledge the gravity of the situation,” admitted Dr. Siror.
The Committee expressed concern over the wasted potential of these projects, with Hon. Pkosing stating, “These projects were intended to improve lives, yet they’ve been left to gather dust. Billions of taxpayers’ money is locked up, and there seems to be no urgency to fix it.”
Governance practices at KPLC also came under fire, particularly the frequency of board meetings. While the Office of the President had directed a maximum of six board meetings per year for state corporations, KPLC’s board held 90 meetings in one year, averaging a meeting every four days.
“We were implementing a turnaround strategy. With five new Board Members brought in Mid-2020, we needed rapid familiarization and strategic guidance.” Dr. Siror explained.
Even so, the audit pointed out that no budget reallocation supported the cost of these meetings, raising concerns about financial discipline.
The Committee also investigated the troubled Last Mile Connectivity Project, financed through a Kshs. 44.8 billion loan from the African Development Bank (AfDB).
The audit exposed multiple operational and oversight lapses including lack of proper public participation, duplication of efforts due to poor inter-agency coordination, and incomplete documentation such as feasibility studies and environmental impact assessments.
Despite 63% of the funds having been spent, only 213,432 customers had been connected far below the target of 525,796.
Another concern involved prepaid meters worth Kshs. 1.08 billion procured from a Chinese supplier. Thousands of meters turned out to be faulty, leaving many customers unable to access electricity despite paying for tokens.
“We regret the inconvenience caused. The issues were software-related and covered by warranty. We have since initiated repairs and replacements. Our teams have also been engaging communities and local leaders to improve transparency and acceptance of ongoing projects.” Dr. Siror said.
The audit also revealed a reporting anomaly in KPLC’s Kshs. 272.3 billion in property, plant, and equipment. Assets worth Kshs. 1.2 billion for street lighting projects had not been removed from the books even after being handed over to the counties. KPLC has since reclassified these assets under the Rural Electrification Scheme to resolve the error.
Financial discrepancies were also flagged between KPLC and its energy sector partners, KenGen, KETRACO, and REREC. For instance, while KPLC reported Kshs. 23.1 billion payables to KenGen, KenGen reported Kshs. 23.8 billion receivables showing a mismatch of over Kshs. 741 million.
“These differences arose from interest on delayed payments, withholding taxes, and timing in financial reporting. We’ve undertaken joint reconciliations, and most of these discrepancies are now resolved.” clarified Dr. Siror.
Hon. Pkosing emphasized that the Committee would recommend strict legal and administrative reforms, saying, “This audit paints a disturbing picture of systemic failure. The public is paying high tariffs, yet projects are abandoned, and basic accountability is lacking. We owe Kenyans real answers and real reforms.”
According to the Committee, with electricity access being critical to Kenya’s social and economic development, all eyes are now on KPLC and the Ministry of Energy to act on these findings.
Hon. Pkosing indicated that as the country grapples with ballooning power costs and infrastructure gaps, restoring public trust in the utility is no longer optional, it is imperative.