Kenya Power distances itself from Sh785m overpayment

Kenya Power Company has distanced itself from Sh785 million excess payment made to Lake Turkana Wind Power, pushing the blame to the Ministry of Energy.

Appearing before the National Assembly Public Investments Committee (PIC) yesterday, Acting Kenya Power CEO Rosemary Oduor said it was the Ministry of Energy that had engaged Lake Turkana Wind Power.

Ms Oduor suggested that the Energy ministry should provide the correct account details to the wind power firm so that the excess payment is refunded.

“The amount was due to the Energy ministry. There was consultation between the Energy ministry and Kenya Power. The ministry has the correct details of the bank,” Ms Oduor told the House committee.

Lake Turkana Wind Power has for the past one year been asking for the correct bank account to refund the excess payment they received.

Taxpayers were charged for idle power following delayed completion of a line to transmit power from Loiyangalani wind plant.

The lawmakers, however, took Ms Oduor to task on why it took Kenya Power one year to respond to a letter from the Lake Turkana Wind Power on the correct bank account to deposit the excess payment.

Refund excess payment

Documents before the committee indicate that Lake Turkana Wind Power wrote to Kenya Power on December 2020 asking for details to refund the excess payment, but the utility firm only responded on November 8, 2021.

Despite taking almost a year to respond to the letter, Kenya power still provided a wrong account to Lake Turkana Wind Power. The money was consequently returned.

The firm once again wrote to Kenya Power in January 18 this year seeking the correct details. The power distributor replied on January 27 but still did not provide the details sought.

“The indication was that additional details were required to complete the transaction,” Ms Oduor said.

Maragua MP Mary Wamaua wondered why KPLC would give an account that does not exist.

“How much does it cost to locate the account number? How could you have given an account that does not exist? Who is enjoying the interest earned from the money?” asked Ms Wamaua.

Kaloleni MP Paul Katana said they would not relent in their quest to know the faces behind the excess payment.

Correct account details

“I can excuse the CEO on the technicalities of the agreement, but not on the letter on correct account details that takes a whole year to reply? Over Sh700 million is not pocket change. We want to know who is behind this,” he said. 

The committee is seeking to establish whether some rogue officials at the Ministry of Energy and Kenya Power deliberately gave the firm the wrong account to benefit from the interest accrued.

The committee now wants Kenya Power to name the individuals delaying the correct bank details for the money to be paid back when the utility firm’s officials appear again on February 16.

The lawmakers also want to know who between Kenya Power and Lake Turkana Wind Power drafted the original power purchase agreement.

“It looks like Lake Turkana were the ones who initiated the tender for the construction of the transmission line,” said committee chairman Abdulswamad Nassir.

“What we are dealing with is that someone drafted the contract and amended the same,” the Mvita MP added.

Ms Oduor urged the committee to give her more time to engage Ketraco because they were sharing some functions in the drafting of the contract.

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