Treasury under fire over unpaid Sh30bn Kenya Power debt

MPs on Tuesday reprimanded top National Treasury officials for failing to appear before them to answer queries regarding a Sh30 billion debt that power agencies owe Kenya Power for rural electrification projects.

The Public Investments Committee on Commercial Affairs and Energy, chaired by Pokot South MP David Pkosing, issued a stern warning to Treasury Principal Secretary Chris Kiptoo, demanding his appearance by next Tuesday or face unspecified sanctions—including a potential vote of no confidence.

The lawmakers expressed frustration over the Treasury’s repeated disregard for parliamentary summons, particularly when called to address audit queries.

The committee’s session followed an audit report by Auditor General Nancy Gathungu, which questioned why Kenya Power had not been reimbursed for the electrification projects.

Additionally, the MPs sought answers on why the Treasury had failed to release funds to power up 56 non-operational minigrids, most of which are in northern Kenya.

These minigrids remain idle due to a lack of batteries and insufficient fuel storage to sustain the power supply.

A Treasury official present at the meeting explained that PS Kiptoo was still out of Nairobi but had engaged Energy PS Alex Wachira on resolving the matter.

The official said, "The PS is not back to Nairobi. He spoke to Energy PS and has committed to support the Energy department within the fiscal framework."

Energy PS Wachira explained, "Kiptoo is unable to join us because of work exigencies. He has given commitments, and for us, it's to read our submissions and have Treasury compelled to act."

The excuses did little to appease the committee members, who argued that the National Treasury was setting a bad precedent by its constant snubs.

Kaloleni MP Paul Katana said, "We acknowledge he has spoken to you as his colleague, but not the committee. He could have communicated with the chairman. He cannot give directions on how Parliament should conduct its business. If he is not going to appear, we'll summon him. We cannot be controlled by civil servants."

Katana further criticised the lack of coordination among government officials, remarking, "We needed no roundtable if the PSs were talking as they claim. We called the roundtable because they are not working together well."

Pkosing questioned the sudden urgency from the Treasury.

"If you people had solved this issue, there would be no meeting. Why now? We know it is a game of musical chairs—that's why we are here."

He said the non-cooperation by state agencies invited before it will not be tolerated.

Eldas MP Adan Keynan emphasised the importance of having all stakeholders present, stating, "It is critical for the players to be around so that we help the different stakeholders make decisions and move on. The problem is the boardroom affairs that affect decision-making. Parliament cannot make one-legged decisions without the players."

Soy MP David Kiplagat took issue with the Treasury’s response, particularly a two-page submission that he deemed inadequate.

"When the committee sits, it takes the power of the House. Under which terms did he contemplate sending a representative yet he was the one invited? His two-page submission cites some commercially viable... Return this two-page to the source. We don't run an enterprise to make a profit."

In the two-page response MPs dismissed, Treasury said the balance had been reduced to Sh25 billion and would be paid in phases for the next five financial years.

“It may not be feasible to provide this amount through the national budget due to tight fiscal space,” the document reads.

With tensions high, the committee stood firm on its ultimatum: Treasury PS Kiptoo must appear before them by next Tuesday—or face the consequences.

INSTANT ANALYSIS

KPLC operates 56 mini-grid generation stations of which 30 are use diesel and solar and the rest being solar mini-grids. The hybrid generation stations are not functioning optimally due to non-functional batteries and fuel storage infrastructure.