KenGen officials taken to task over cost of power

By James  Anyanzwa

Nairobi, Kenya: Kenya Electricity Generating Company (KenGen) management Wednesday had a difficult time justifying high expenditures on power projects which have not translated to low cost of power.

Senior managers of the power producer were at the same time unable to clearly distinguish before a Parliamentary watchdog committee the functions of KenGen from those of Geothermal Development Company (GDC).

KenGen’s acting Chief Executive Simon Ngure also failed to disclose the identities of shareholders owning shares in the company through nominee accounts and instead asked for three more weeks to gather the information. The managers were, instead, issued with one more week to come up with proper responses.

The   parliamentary Public Investments Committee (PIC) raised concerns over KenGen’s heavy expenditure on drilling rigs and queried why such investments have not translated to a reduction in the cost of electricity.

“We want information on how many rigs we have in the country, who own them, cost of the rigs, who financed them, who maintains them and how many wells you have drilled,” said Adan Keynan, PIC Chair.

Few individuals

Keynan noted that the rigs are acquired through loans, which are being serviced by taxpayers.

“Is the public benefiting from these investments or are   they just meant to benefit a few individuals,” he queried.

Limuru MP Chege Kiragu asked KenGen management to explain what they are doing to lower the cost of power saying it is one of the major factors that have rendered the country an expensive investment destination.

However, John Omenge a Chief Geologist at the Ministry of Energy confirmed there was indeed a conflict between the two institutions, which have since been resolved.

“I confirm we did have issues with jurisdiction but which were sorted out. We don’t have conflicts of jurisdictions anymore,” he said.