The Energy and Petroleum Regulatory Authority (EPRA) is facing serious questions after the Auditor-General exposed a procurement scandal involving Sh21 million paid for two vehicles that had not yet been delivered.
In her audit report, Nancy Gathungu pointed out that the money was paid to CFAO Motors Ltd in
May and June 2024 for a Toyota Fortuner and a Toyota Hiace that were still in production in Japan.
According to the report, this goes against Section 146 of the Public Procurement and Asset Disposal Act, 2015, which clearly states that advance payments for undelivered goods are not allowed.
The law was put in place to protect public funds from misuse and reduce the chances of financial loss or non-delivery.The situation becomes more troubling when looking at the dates.
CFAO Motors had sent letters to EPRA indicating that the vehicles would arrive in September and November 2024.
However, EPRA officials went ahead and confirmed receiving the vehicles in May and June 2024, months before they were even shipped.
EPRA’s own records show that the actual delivery only happened in December 2024, with inspections carried out in January 2025.
This mismatch raises serious concerns about the integrity of the documentation and the intentions behind the payments.
EPRA’s Director-General Daniel Kiptoo tried to defend the payments by saying the supplier requires full payment before vehicle registration.
However, this explanation does not change the fact that it breaks the law.
Supplier policies do not override Kenyan laws, and public institutions are expected to follow procurement rules no matter the circumstances.
This weak justification has fueled public anger, especially on social media platforms like X, where users are openly accusing EPRA of participating in corruption and misuse of taxpayer funds.
Posts by financial influencers like moneyacademyKE have attracted replies from Kenyans demanding accountability. One user linked the incident to the wider issue of procurement fraud, claiming the country loses over Sh600 billion annually through such deals.
Others suggested that the payments may have been used to benefit individuals within the agency.
The controversy is not just about the cars it reflects deeper problems in how public institutions manage funds and follow rules.
This is not the first time EPRA has been mentioned in questionable deals. In 2024, a report from Business Daily showed that the agency had irregularities in a Sh1.6 billion fuel testing tender. When similar issues keep appearing, it suggests a pattern that goes beyond simple mistakes.
The Auditor-General’s report adds weight to public calls for investigations and reforms. People want to know why EPRA made those payments, who approved them, and what will be done to make sure it doesn’t happen again.
The detailed timeline shows that money was paid before the supplier was even close to delivering the vehicles, and EPRA signed off documents as if the cars had arrived.
This raises questions about collusion and whether officials deliberately faked records.
The fact that the vehicles were only inspected in January 2025, a month after delivery, makes it even harder to believe that EPRA was unaware of the problem. Everything points to a clear violation of the law, and if action is not taken, it will set a bad example for other government agencies.
This issue goes beyond EPRA. It highlights the loopholes and poor enforcement of procurement laws across government institutions. Without accountability, these kinds of deals will continue, and Kenyans will keep paying the price.
The Auditor-General did her job. Now it’s time for the responsible authorities to act and show that breaking procurement laws has real consequences.
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