Energy Principal Secretary Alex Wachira was put to task by Members of the Public Debt and Privatisation Committee on July 7 over a sharp rise of over Ksh 6 billion in the cost of the National System Control Centre (NSCC) electricity project.
The project’s budget notably increased from Ksh 7.8 billion to Ksh 13.8 billion, sparking concerns among MPs about the use of public funds.
Lawmakers questioned the justification for the KSh 6 billion increase.
Appearing before the Committee, PS Wachira was asked to explain the nearly 100 per cent rise in cost.
Committee Chairperson Abdi Shurie (Balambala) said the documents presented failed to account for the large variation.
The energy PS questioned
“There is a very large variation between the initial amount and the current one,” said Shurie.
“Adding KSh 6 billion is almost equivalent to a 100 per cent increase, and what you have submitted does not justify this,” he added.
In his response, Wachira said the additional cost was due to several factors. He cited inflation, changes after bid negotiations, and the impact of COVID-19 on global economics.
He explained that the original budget was based on a 2027 projection, but market conditions had changed.
Prices for materials and services had risen between 2019 and 2023, forcing a revision.
Wachira accounts for the budget
“The difference arose due to inflation, the global economic slowdown during the pandemic, and other risk-related adjustments. We will ensure value for money once the project is completed,” said Wachira, the energy PS.
He also noted that the implementation period had been reduced from 42 to 36 months.
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This decision, he said, was made to align with sector demands and required faster execution, increasing the cost.
Additional technical adjustments were also made. The floor area of the control centre was expanded by more than double.
There were new requirements for wastewater management, enhanced physical security, sanitary systems, and improved internal finishing standards.
The committee’s decision on the energy issues
These changes, according to the PS, could not have been foreseen during the initial planning stages and were necessary to meet international standards.
The Committee was not fully convinced and directed the PS to submit detailed documents justifying every cost element. Members said public projects must be transparent and accountable.
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“Following a directive by the Committee Chairperson, the PS and his team are now expected to furnish the Members with sufficient details justifying the budget increase,” read the parliament report in part.
The Committee will review the new submissions before giving its final position. MPs maintained that all spending must be backed by evidence to avoid misuse of public resources.
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