Members of Parliament have pressed the Kenya Electricity Transmission Company (KETRACO) over a Ksh75.6 million variance in its accounts and Ksh2.3 billion in unpaid wayleave compensation owed to landowners.

The Public Investment Committee on Commercial Affairs and Energy, chaired by Pokot South MP David Pkosing, met KETRACO’s acting Managing Director, Kipkemoi Kibias, to review the utility’s audited accounts for the 2021/2022 financial year.

Documents showed that KETRACO’s statement of financial position listed Ksh4.64 billion receivable from Kenya Power and Lighting Company (KPLC), while KPLC’s records indicated Ksh4.57 billion, leaving a discrepancy of Ksh75.6 million.

“The Ksh75.6 million difference relates to withholding tax on invoices processed by KPLC but not yet reconciled in our books at the time. KPLC, as a tax agent, deducts and remits withholding tax to the Kenya Revenue Authority before issuing certificates to KETRACO for reconciliation,” Kipkemoi explained.

He added that KPLC remitted Ksh47.8 billion during the 2021/2022 Financial Year, including payments for pending invoices, and that as of February 2026, receivables had fallen to Ksh2.3 billion.

“Who exactly is supposed to pay the withholding tax?” Committee member Duncan Mathenge asked

“KPLC deducts and remits the tax on behalf of KETRACO before issuing the necessary certificates,” the MD replied.

Ksh2.3 billion wayleave delays

The Committee also examined records showing KETRACO owes landowners Ksh2.3 billion in wayleave compensation. Management cited inadequate budget allocations, prolonged negotiations, incomplete documentation, and ownership disputes as reasons for delays. Some cases are in court.

Auditors warned that delayed payments expose KETRACO to legal action, rising costs, and project delays.

“Before constructing any transmission line, we seek consent from landowners and conduct negotiations. However, some long-standing balances are due to budget constraints, documentation gaps, and disputes over ownership,” Kipkemoi said.

He added that payment of outstanding claims depends on available exchequer support and that the company is working with other government agencies to resolve disputes.

Paul Katana asked how many cases remain unresolved. The MD said pending balances are project-based, noting that the Olkaria–Lessos–Kisumu line has the largest outstanding amount, around Ksh1.4 billion.

MPs also raised concerns about transmission lines restricting land use.

“Why compensate at all if, five or six years down the line, landowners still cannot fully utilise their land? You are creating encumbrances that make it difficult for the very people you intend to benefit from these projects,” Kiunjuri said.

The acting MD highlighted ongoing projects to stabilise power supply, including an underground cable project in Nanyuki to improve supply to Rumuruti and support Samburu County, and an interconnector line linking Isiolo and Nanyuki.

Vice-Chairman John Seiko urged the agency to fast-track critical projects to address persistent power shortages across the country.