Auditor General Nancy Gathungu has raised concerns over the Kenya Electricity Transmission Company (KETRACO) regarding Sh431 million in land compensation payments. The audit report for the financial year ending June 30, 2024, highlights discrepancies in KETRACO’s financial records, particularly concerning the Olkaria-Lessos-Kisumu transmission line project. The report indicates that KETRACO paid Sh207.5 million to 172 individuals affected by the project, whereas previous financial statements reported only Sh27.3 million as outstanding compensation, resulting in an unexplained variance of Sh180.2 million. The Auditor General noted that KETRACO failed to provide clear records of payment recipients, casting doubt on the legitimacy of the disbursements.
Similar issues were observed in another project involving 220kV and 132kV transmission lines and substations, where KETRACO reportedly spent Sh117.68 million on compensation, despite previously declaring only Sh73.5 million as outstanding. The audit concluded that KETRACO had failed to account for Sh431.27 million in wayleave payments by mid-2023, with the full sum only appearing in the latest financial review.
These discrepancies have raised concerns about the transparency and accountability of KETRACO’s financial management, particularly in relation to land compensation. The Auditor General’s report emphasizes the need for KETRACO to provide clear and accurate records of all compensation payments to ensure proper accountability and to prevent any potential misuse of public funds.
