Parliament has summoned the Cabinet Secretaries for Energy and the Treasury over Sh30 billion debt owed to Kenya Power.
The National Assembly’s Public Investments Committee on Commercial Affairs and Energy has also summoned the management of the Kenya Power, Rural Electrification Renewable Energy Corporation (Rerec), and the Energy and Petroleum Regulatory Authority (Epra) over 30 mini-grids that have stalled despite the government sinking millions of shillings to construct in arid-and semi-arid areas.
Committee chairperson David Pkosing has directed the entities to appear before it on August 5, 2025, for a round table meeting to resolve the Sh30 billion debt owed to Kenya Power and the stalled mini-grids that were developed by Rerec and handed over to the electricity distributor more than three years ago.
Kenya Power is owed Sh30 billion by the Ministry of Energy and the Treasury for the provision of subsidised power under the Rural Electrification Scheme (RES) which the utility firm administers on behalf of the government.
Rural Electrification Scheme (RES) is funded by the national government and implemented by Kenya Power on behalf of the Ministry of Energy and Petroleum (MOEP).
The schemes under RES are considered sub-economic, given that their operational and maintenance costs exceed their revenues, and it was agreed that the government will reimburse Kenya Power any deficit arising from the Scheme.
A Kenya Power employee carries out repairs on Haile Selassie Road, Mombasa.
Photo credit: File | Nation Media Group
The resultant accumulated deficit is recoverable from the government as stipulated in the 1973 Mercado Agreement signed between KPLC and the government through the Ministry of Energy and Petroleum.
Mr Pkosking termed the stalled mini-grids in Mandera, Samburu, Wajir, Turkana, Marsabit, and Lamu as white elephants after Kenya Power Managing Director Joseph Siror failed to explain why the investments had failed to help the intended customers access electricity.
Kenya Power Managing Director Joseph Siror when he appeared before the Senate Energy Committee at Parliament Buildings in Nairobi on October 17.
Photo credit: File | Nation Media Group
He said the round table will address the huge debt owed to Kenya Power while Kenyans are not benefiting from electricity.
Dr Siror appeared before the committee to respond to queries raised by Auditor General Nancy Gathungu on Kenya Power's books of accounts from the financial year 2018/19 to 2022/23.
“I direct that there be a round table meeting between Kenya Power, Rerec, Epra and the Cabinet Secretaries for Energy and the Treasury. We want to address the issue of Sh30 billion debt and the 30 mini-grids,” Mr Pkosing said.
“The 30 mini-grids are white elephants because they were procured and have not served the intended purpose.”
Mr Pkosing made the ruling after Wajir West MP Farah Mohamed put Dr Siror to task to explain why a mini-grid located in Hadado area of his constituency had not worked for a single day after Rerec transferred it to Kenya Power more than three years ago.
“Kenya Power put up the mini-grid three years ago but it has never worked. The mini-grid generator can work for 12 hours. But the generator lacks fuel. If the solar batteries can’t work, the diesel generator can work,” Mr Mohamed said.
Kenya Power offices on Aga Khan Walk in Nairobi.
Photo credit: Dennis Onsongo I Nation Media Group
“They (Kenya Power) are doing another six mini-grids in my constituency and have issued out contracts. If the mini-grid in Hadado has not worked since I came to Parliament in 2022, how will the ones they are building work?”
Kenya Power failed to respond to Mr Mohammed why the diesel generator in Hadado had not been fueled since the installation of the mini-grid.
Dr Siror was hard-pressed to explain why the mini-grid, which combines solar and diesel generators, had not worked.
He told the committee that the mini-grids had suffered battery failure and that Kenya Power had written to the Treasury to provide funding for the replacement of the batteries.
“We will fall back and revert to you on the issues of the mini-grids. We know there could be some problems,” Dr Siror said.
