Kengen questioned over multimillion equipment deal

By Peter Opiyo

Kenya's Electricity Generating Company Kengen is on the spot over a sh 825 million equipment deal with a Norwegian company.

MPs have raised questions over the credibility of the contract with Norway’s Green Energy Group (GEG) likening it to past scandals like Anglo-leasing after the supply of a defective power generating equipment.

Parliament’s Energy Committee raised serious issues over the procurement of mobile steam power generation equipments known as wellhead generator.

KenGen is accused of engaging in a contract with a company with no capacity to manufacture the equipment occasioning supply of defective components of the power generators.

A turbine of the one of the containerized wellhead generator supplied by GEG turned to be defective and was returned to the manufacturers.

It emerged GEG contracted an Indian company to make the turbine and following the defect, GEG is now turning to another manufacturer for a new turbine.

KenGen has paid Sh349 million to GEG and the company is to replace the turbine at its own cost as per the contract agreement.

It emerged that GEG would now contract a company in Iceland to manufacture the turbine.

Wajir West MP, Adan Keynan called on KenGen to avail the names of the directors of the companies involved in the deal to ascertain their nationality to clear the air over favouritism or corruption.

Cherangany MP, Joshua Kuttuny also called for the revelation of the directors of the company,‘so that we know if there was swindling.’ Keynan said it was worrying that a company, GEG, which was registered in 2008 was able to win a contract of this magnitude, a year later.

The committee chairman James Rege ruled that the names be availed when the committee next meets KenGen.

Kengen’s CEO Eddy Njoroge told the committee that it is only GEG that is involved in the manufacture of the mobile wellhead generators in the world and that none existed according to KenGen’s knowledge.

Rangwe MP Martin Ogindo therefore queried whether the company was purchasing something that has never existed, saying it was reminiscent of the Anglo-leasing scandal.

"The kind of activity that KenGen is engaging is reminiscent of Anglo-leasing scandal when the government used money to pay phony companies. Why don’t you agree this is a hoax?" posed Ogindo.

But Njoroge said the project is a reality saying the programme is a pilot project that would be used to generate power from production wells as the company awaits to build a 280MW power plant, which would take three years to complete.

"I don’t agree it is a hoax, because at the moment we have a well-head in Egurru, which is being commissioned currently," said Njoroge.

Rege however, blamed KenGen for failing to inspect the turbine before it was shipped into the country.

Energy Minister Kiraitu Murungi called on the MPs to be patient and stop condemning KenGen since the project is pilot and is prone to challenges.

"This is a pilot project and we are using it to find out challenges we may face. Even when you drive you find potholes on the road. We shouldn’t condemn so much," said Kiraitu.