Parliamentarians scrutinize KenGen's expenditure on feasibility studies
The Kenya Electricity Generating Company (KenGen) is facing criticism and scrutiny following revelations that it spent approximately Sh370 million on feasibility studies without the necessary approval from the Ministry of Energy [2][5]. This lack of approval has raised concerns about governance and due process in KenGen's project preparations.
The Ministry of Energy's approval is crucial for such studies to ensure they align with national energy policy and investment priorities. The Public Investments Committee (PIC) of the Kenyan Parliament has emphasised the need for improved oversight and adherence to regulatory procedures in project feasibility assessments.
KenGen's activities, including these feasibility studies, form part of its broader initiatives in expanding and developing Kenya's energy infrastructure. These initiatives involve projects supported by international partners such as France and the European Union, which back large-scale grid upgrades and regional power integration efforts [1]. However, the unauthorized feasibility studies spending casts a shadow on the company’s project management practices.
The PIC's findings highlight the importance of tighter financial controls and proper authorization processes to ensure public funds used by KenGen follow due process and deliver value to the energy sector and the public. This focus by the PIC also reflects broader parliamentary oversight aimed at strengthening accountability in state corporations involved in critical infrastructure development [2][5].
At a glance: - Amount spent on feasibility studies: Sh370 million - Issue raised by PIC: Some studies done without Ministry of Energy approval - Importance of approval: Ensures compliance with national energy policies - Broader context: KenGen involved in expanding power infrastructure with international support (France, EU)
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The Ministry of Energy's approval is essential for ensuring that feasibility studies in the Kenyan energy business industry align with the national energy policy and investment priorities, which is currently under question due to KenGen's unauthorized expenditure of Sh370 million on such studies. The Public Investments Committee (PIC) of the Kenyan Parliament has underscored the importance of stricter financial controls, adherence to regulatory procedures, and proper authorization processes in project feasibility assessments, given their implications for public funds used by state corporations like KenGen and the overall value they deliver to the energy sector and public.
