The Kenya Electricity Generating Company PLC (KenGen) is under scrutiny over land disputes, financial inconsistencies, and idle energy projects.
National Assembly’s Public Investments Committee on Commercial Affairs and Energy summoned the firm’s top management on Tuesday, July 1, 2025, at Parliament Buildings in Nairobi.
The Committee, chaired by Pokot South MP David Pkosing, questioned KenGen executives over audit queries flagged in financial years 2020/21 to 2022/23.
Audit Concerns Raise Red Flags
“The Public Investments Committee on Commercial Affairs and Energy has put KenGen executives on the spot over a series of audit concerns covering the financial years 2020/21 to 2022/23,” read a statement from the National Assembly.
KenGen’s Managing Director and CEO Eng. Peter Njenga was grilled on disputed land ownership and stalled projects that have triggered public outrage.
One key issue involved KenGen’s reported Ksh6.8 billion in right-of-use assets. Ksh 5.89 billion of this is tied to leasehold land.
A 12.39-hectare parcel worth Ksh 550 million also drew particular scrutiny after it was revealed that the lease had expired in 1991 and the ownership documents were missing.
“The title deed was under lien, but the matter has now been resolved. We signed a 50-year lease with the Ministry of Lands on March 27, 2023, and received a new certificate of title on April 5,” said Eng. Njenga.
He said the delay in processing the title was due to a long-standing legal fee dispute between Kenya Power and its lawyer.
MPs Demand Original Title Deed and Clarification from KenGen
On his part, MP Mwangi Kiunjuri questioned why the lease term was reduced to 50 years instead of the usual 99 and he directed that the original title deed be submitted to the Committee within two weeks.
Pkosing instructed KenGen to present a comprehensive report on the lease terms, the legal dispute, and causes of delay.
The Auditor-General’s report flagged a Ksh 435 million discrepancy in balances between KenGen and Kenya Power.
KenGen reported receivables of Ksh 23.58 billion while Kenya Power listed payables of Kah 23.15 billion. A similar difference of Ksh 74.5 million was noted in transactions with the Geothermal Development Corporation (GDC).
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Eng. Njenga told the Committee that the balances had been reconciled to Ksh 22.56 billion by June 30, 2023. He also confirmed that the variance with GDC had been resolved.
The MPs questioned why the Olkaria IV and AU substations, valued at Ksh 4.59 billion and built in 2015, had not been transferred to Kenya Electricity Transmission Company (KETRACO).
National Treasury Assumed Loan on Substations
“The Treasury signed a subsidiary loan agreement on June 28, 2024, assuming the €36.9 million European Investment Bank loan owed by KETRACO,” Eng. Njenga said.
The Committee also raised concern over Ksh 623 million spent on feasibility studies, including Ksh 378 million used up to a decade ago that yielded no results.
Hon. Pkosing ordered KenGen to submit complete reports for Meru Wind Phase 1, Ngong I Phase 3, and Karura Hydropower Project.
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“We must determine if taxpayers are getting value for their money. It is unacceptable for expensive studies to sit on shelves while Kenyans continue to suffer blackouts and exorbitant electricity bills,” said Hon. Pkosing.
Nairobi Woman Representative Hon. Esther Passaris also expressed public frustration.
“We are being told of feasibility studies worth millions that haven’t produced anything on the ground. These shoddy deals are hurting ordinary Kenyans,” she said.
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