Kenya Electricity Transmission Company (KETRACO) Managing Director John Mativo faced tough questioning from Members of Parliament on Thursday, August 14, 2025, over billions lost in arbitration, questionable procurement procedures, and delays in paying landowners.
Appearing before the Public Investments Committee on Commercial Affairs and Energy chaired by Pokot South MP David Pkosing, Mativo was pressed to explain a Ksh4.5 billion arbitration award against KETRACO after the termination of a contract in 2016 for a 132 km 400 kV double circuit transmission line from Lessos in Kenya to Tororo in Uganda.
The award, granted to Spanish contractor Inabensa in 2019, has been upheld by all courts, including the Supreme Court.Mativo told MPs that KETRACO had opposed the award because it was not in the public interest and had exhausted all legal options, but the courts ruled against them.
He added that the National Treasury had not responded to a 2020 request for financing to complete the project.
However, MPs questioned why the cross-border project was still incomplete nearly a decade later. Pkosing challenged the explanation, saying it was not only about legal costs but also about the fact that a project meant to connect Kenya to Uganda’s power grid had stalled, with billions already spent but no electricity flowing.
The committee also raised concerns about the Loiyangalani–Suswa Transmission Interconnector project.
A 2021 special audit revealed payments to a contractor who later went bankrupt, procurement done outside approved plans, uncertified subcontractor works worth Ksh1.5 billion, and the purchase of materials without valuation reports.
Mativo defended KETRACO, saying due diligence had been done before the contractor became insolvent and that after the collapse, the National Treasury approved a new procurement process to complete the works.
He said the project had been operational since 2018 despite the challenges.On the issue of wayleave compensation, MPs expressed concern over Ksh2.7 billion owed to landowners, with some payments delayed for years.
Mativo blamed the delays on insufficient allocations from the Treasury, incomplete documentation, and disputes with county governments.
He noted that the pending amount had been reduced to Ksh1.47 billion as of June 2025. Lawmakers warned that such delays were unacceptable and risked affecting future projects as communities lose trust in government agencies.
MPs also flagged Ksh6.7 billion in contingent liabilities from ongoing court cases and contractor claims, warning that such financial burdens could cripple KETRACO’s ability to deliver on its mandate.
The grilling left many questions unanswered, with the committee expected to push for accountability and a clear plan to ensure that taxpayers’ money is protected and essential power projects are completed without further wastage.
