Kenya Electricity Transmission Company (KETRACO) Managing Director Eng. John Mativo appearing before the Public Investments Committee on Commercial Affairs & Energy (PIC-CA&E) on Thursday, August 14, 2025. Photo by PBU 
By Andrew Mbuva
The Public Investments Committee on Commercial Affairs & Energy (PIC-CA&E) on Thursday, August 14, 2025, put Kenya Electricity Transmission Company (KETRACO) Managing Director Eng. John Mativo on the defensive over billions lost in arbitration, questionable procurement processes, and years-long delays in compensating landowners.
Chaired by Pokot South MP David Pkosing, the committee was probing the company’s audited accounts for the 2018/19 to 2022/23 financial years, with a spotlight on a Sh4.5 billion arbitration award against KETRACO in a cross-border power line project.
The dispute arose from the termination in 2016 of a contract for the construction of a 132-kilometre, 400kV double-circuit transmission line from Lessos (Kenya) to Tororo (Uganda). Spanish contractor Inabensa won the arbitration in July 2019, with the award upheld at every stage of appeal, including the Supreme Court.
“We felt the decision was against public interest and pursued every legal avenue, but unfortunately, the courts did not rule in our favour,” Eng. Mativo told MPs, noting that the National Treasury has yet to respond to a 2020 request for project financing.
But MPs pressed him on why the project remains incomplete nine years after termination.
“This is not just about legal costs. It’s about a project meant to connect Kenya to Uganda’s grid. How do we explain to Kenyans that billions have been paid but no power flows?” Pkosing demanded.
The committee also flagged irregularities in the Loiyangalani–Suswa Transmission Interconnector project. A 2021 special audit cited Sh10.8 million paid to a contractor who later went bankrupt, procurement outside the annual plan, Sh1.5 billion in uncertified subcontractor works, and Sh26.2 million in materials bought without valuation reports.
“Due diligence was done before the insolvency occurred,” Mativo said in defence. “After the contractor’s collapse, the Treasury approved a new procurement process to complete the works. The project has been operational since 2018.”
Another major concern was KETRACO’s Sh2.7 billion backlog in wayleave compensation to landowners, with some cases pending for years. MPs warned that delays could spark lawsuits, inflate costs, and stall key projects.
Mativo attributed the delays to insufficient Treasury allocations, incomplete documentation, and disputes involving county governments and landowners. “We have reduced the pending amount to Sh1.47 billion as of June 2025, but payment depends on the budget we receive,” he said.
The committee also expressed alarm over Sh6.7 billion in contingent liabilities from ongoing court cases and contractor claims, warning they could cripple the company if realised.
Pkosing told the MD: “Your books read like a risk manual—court battles, unpaid bills, and unfinished projects. When will Kenyans see the value for the billions invested?”
In response, Mativo said KETRACO is working with other government agencies to resolve disputes and secure funding. “Our priority is to ensure that these transmission projects, despite setbacks, are completed for the benefit of Kenyans,” he said.
The session ended with the committee demanding detailed follow-up documentation on all disputed projects, pending wayleave payments, and measures to prevent future losses.
