Kenya Electricity Transmission Company (KETRACO) Managing Director John Mativo came under intense questioning from Members of Parliament (MPs) on Thursday, August 14, 2025, over billions lost in arbitration, irregular procurement processes, and delays in compensating landowners.

Appearing before the Public Investments Committee on Commercial Affairs & Energy (PIC-CA&E), chaired by Pokot South MP David Pkosing, Mativo was tasked to explain a Ksh4.5 billion arbitration award against KETRACO following the termination of a contract for a 132 km 400 kV double circuit transmission line from Lessos (Kenya) to Tororo (Uganda) in 2016.

The award, granted to Spanish contractor Inabensa in 2019, has been upheld at all court levels, 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,” Mativo said, noting that the National Treasury has yet to respond to a 2020 request for project financing.

MPs, however, questioned why the cross-border project remains incomplete nearly a decade later.

“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 posed.

Loiyangalani–Suswa Transmission project

The Committee also flagged irregularities in the Loiyangalani–Suswa Transmission Interconnector project.

A 2021 special audit revealed payments to a contractor who later went bankrupt, procurement outside approved plans, uncertified subcontractor works worth Ksh1.5 billion, and materials purchased without valuation reports.

Mativo insisted that due diligence had been done before the insolvency and that the project had been operational since 2018.

“Due diligence was done before the insolvency occurred. After the contractor’s collapse, the National Treasury approved a new procurement process to complete the works. The project has been operational since 2018,” Mativo said.

Wayleave compensation

In addition, MPs raised alarm over KSh2.7 billion in pending wayleave compensation to landowners, some outstanding for years.

Mativo attributed the delays to insufficient Treasury allocations, incomplete documentation, and disputes with county governments but said the backlog had been reduced to Ksh1.47 billion as of June 2025.

Lawmakers further warned about Ksh6.7 billion in contingent liabilities from ongoing court cases and contractor claims, which they said could cripple KETRACO’s ability to deliver projects.