A parliamentary committee has intensified its probe into Kenya’s energy sector, calling on the Ethics and Anti-Corruption Commission (EACC) to investigate former Energy Permanent Secretaries Patrick Nyoike and Joseph Njoroge.
The two, along with ex-Kenya Power CEO Joseph Kibati, are accused of authorizing detrimental power purchasing agreements (PPAs) with Lake Turkana Wind Power (LTWP).These deals have burdened the taxpayers and exposed deep-rooted corruption in the sector.
The LTWP deal, criticized for its financial mismanagement, has become emblematic of the inefficiencies plaguing Kenya’s energy sector.
Despite being touted as a success for renewable energy, the project’s operational failures have cost the country billions.
At the heart of the controversy is a 2010 PPA signed before LTWP even secured a license.
This agreement included compensation for “deemed generated energy” (DGE) payments, for power that could not be supplied due to delays in building the necessary transmission infrastructure.
By the time the transmission line was finished in 2018, Kenya had already paid over KSh 18 billion in penalties.
The failure of oversight and the willingness to approve such detrimental agreements calls into question the leadership of Nyoike and Njoroge during their respective terms.
LTWP also allegedly overcharged Kenya by KSh 785 million based on inaccurate projections of power generation.
The refund took more than a year, reportedly delayed due to errors in bank account details provided by Kenya.
The Treasury’s inability to recover this money promptly raises further doubts about the competence and integrity of those responsible for managing public resources.
Kenya Power has faced several controversies, including overpayments to independent power producers, questionable procurement practices, and internal corruption.
For example, the unexpected resignations of key figures during parliamentary investigations into the LTWP payments further fuel suspicions of collusion within the energy sector.
The actions of Nyoike, Njoroge, and Kibati have caused massive financial damage.
Their time in office was marked by the approval of inflated tariffs that continue to weigh heavily on Kenyan households and businesses.
Under the LTWP agreement, Kenya Power pays €9.2 per kilowatt-hour (kWh), far exceeding the market rate, with consumers bearing the cost of these inflated prices.
Despite public outcry, there has been little effort to renegotiate these unfavorable terms.
These agreements not only result in financial losses but also erode public confidence in the country’s institutions.
The energy sector, vital for the nation’s growth, has been tainted by accusations of corruption, mismanagement, and greed.
The reluctance of officials involved to take responsibility suggests a culture of entitlement and a disregard for the public interest.This situation underscores the urgent need for reform.
Strengthening oversight, implementing transparent procurement procedures, and imposing harsher penalties on corrupt officials are essential steps in rebuilding public trust.
The ongoing investigations by the EACC must be thorough and unyielding to ensure that those responsible for these failures are held accountable.
Without decisive action, Kenya risks perpetuating a cycle of exploitation that undermines its development objectives.
