The Kenya Electricity Transmission Company (KETRACO) is under growing scrutiny from Parliament over legal and financial exposures totalling nearly Sh13 billion, amid delays in key projects and unpaid land compensation claims.

Members of the Public Investments Committee on Commercial Affairs and Energy raised alarm over the company’s contingent liabilities, which they warned could severely affect the delivery of energy services across the country.

The lawmakers questioned KETRACO’s leadership over a backlog of legal claims, stalled projects, and unresolved financial commitments during a session at Parliament Buildings.

The Committee, chaired by Pokot South MP David Pkosing, examined audited accounts for the financial years 2018/19 to 2022/23 and called for accountability on pending projects and liabilities.

KETRACO Managing Director Dr. Eng. John Mativo led the team that appeared before the Committee and faced a barrage of questions from legislators, particularly over compensation disputes and terminated contracts that continue to burden the company financially.

“Should these liabilities materialize, KETRACO could find itself under immense financial strain, affecting its core function of transmitting electricity to homes and businesses across the country,” said Pkosing.

Much of the financial exposure was traced to a terminated contract under the Kenya-Uganda Lessos-Tororo 400kV interconnection project, which was part of a wider effort to link regional power grids.

KETRACO told MPs it conducts regular reviews of these liabilities but legislators remained dissatisfied with the lack of resolution.

Another major concern raised was the delayed compensation for landowners whose property was affected by transmission lines. KETRACO had an outstanding Sh3.39 billion in wayleave payments at the start of the year, a figure the company said had reduced to Sh1.47 billion by June.

Management attributed the delay to limited funding from the exchequer, drawn-out negotiations with landowners, and court cases, but said efforts were ongoing to clear the remaining balance.

“Our progress is constrained by budget limitations and, in some cases, unresolved ownership or documentation issues. But we remain committed to ensuring every genuine claim is settled fairly,” Mativo said.

The Committee also questioned delays in four major transmission projects: the 220kV and 132kV transmission lines and substations project, the Power Transmission System Improvement Project, the Kenya-Tanzania Power Interconnection Project, and Kenya’s section of the Nile Equatorial Lakes Countries Interconnection Project.

According to audit reports, the prolonged implementation timelines risk pushing up costs and extending power shortages, particularly in areas counting on expanded electricity access for economic development.

KETRACO blamed the delays on procurement issues, legal battles, and challenges related to cross-border coordination.

Lawmakers were also concerned that KETRACO has been billing Kenya Power and Lighting Company (KPLC) for transmission services despite the absence of a formal contract.

While the charges are based on an approved tariff, the MPs said this practice lacked accountability.

“We cannot rely on drafts and good faith when handling billions in public resources. A binding agreement is non-negotiable,” said Vihiga MP Beatrice Adagala.

Dr. Mativo acknowledged that a draft agreement with KPLC exists and that receivables are being managed internally, but assured the Committee that finalizing the deal is a top priority.

As the session concluded, Pkosing urged the company to implement audit recommendations and tighten its internal controls, warning that public trust and national development were on the line.

“Our duty is to ensure public funds are put to good use. Kenyans deserve efficient services, and every shilling allocated to KETRACO must result in tangible progress—lights in homes, power in industries, and growth in our economy,” he said.

The Committee will compile its report for Parliament, expected to include recommendations for better project execution, enhanced accountability, and compliance across the energy sector.