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MPs grill KenGen over Sh378 million feasibility study costs and stalled projects

MPs grill KenGen over Sh378 million feasibility study costs and stalled projects
Members of Parliament during a plenary session on July 1, 2025. PHOTO/NATIONAL ASSEMBLY
In Summary

Members questioned a 2014 feasibility study that cost Sh163 million, which was not approved by the Ministry of Energy, yet KenGen is now seeking new consultants to update it.

Members of Parliament are demanding answers from the Kenya Electricity Generating Company (KenGen) over the use of more than Sh370 million on feasibility studies that in many cases lacked approval and failed to lead to any tangible projects.

The Public Investments Committee on Commercial Affairs and Energy on Tuesday questioned KenGen’s Managing Director Peter Njenga, raising concerns that the power producer commissioned several studies without clear planning, land ownership, or risk assessment decisions that lawmakers said amounted to poor management of public funds.

Nyeri Town MP Dancun Maina took issue with cases where consultants were hired before land was secured or even project sites identified. “They went ahead with a feasibility study before even identifying where the project would be located. How do you spend millions without knowing where the project is going?” he asked.

The committee, chaired by Pokot South MP David Pkosing, sought clarity on who initiated the studies, the strategic plans behind them, and the procurement process, including names of consultants and whether the projects brought any return on investment.

Members questioned a 2014 feasibility study that cost Sh163 million, which was not approved by the Ministry of Energy, yet KenGen is now seeking new consultants to update it.

“How do you justify spending more money to update a study that should never have proceeded without the Ministry’s green light in the first place? This cycle of feasibility studies has become a money pit,” said Maina.

He added, “And it has taken now, like, more than 10 years, it’s now that now they are saying that they got their approval from the Ministry of Energy. And again, now they are procuring for another consultant to update, to update the feasibility study that was done, like, 11 years ago. So this would be another circus.”

Njenga defended the studies, saying they were part of long-term energy planning aimed at boosting the country’s generation capacity from renewable sources.

“Yes, these projects are actually in the strategic plan for KenGen,” he said.

He noted that some studies, such as the Meru Wind Farm, had stalled due to land acquisition delays.

KenGen’s General Manager for Strategy and Projects, Elizabeth Muli, said the studies had helped identify ideal sites and guided land acquisition, but MPs were not convinced, especially after it was revealed that the National Land Commission was not always involved.

Lawmakers also scrutinised the Ngong Wind Project, where KenGen initially installed 25.5 MW of capacity and later sought to add 10 MW.

The committee questioned how much of the Sh57 billion allocated for the expansion had already been used, especially since aviation authorities raised concerns that the wind turbines could interfere with flight signals.

“Are we looking at a white elephant?” asked Pkosing. “Who is going to pay for these mistakes if the entire project is halted?”

Committee members ordered KenGen to provide a detailed breakdown of feasibility reports, including Meru Wind Phase 1, Ngong I Phase 3, and Karura Hydropower Project, as well as the consultants involved and the scope of their work.

Pkosing emphasised the need for transparency and accountability. “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,” he said.

Nairobi Woman Representative Esther Passaris also criticised the state agency. “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.

She added, “Thousands of families go without power. Companies are shutting down. KenGen must take responsibility and start showing results. We need a reliable, affordable energy supply now more than ever.”

In response to the pressure from lawmakers, KenGen pledged to fast-track the pending projects and improve transparency in its operations.

“Electricity is not a luxury, it’s a lifeline. KenGen must be held accountable for every shilling spent and every light that fails to shine,” Passaris said.

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