World Bank faults KPLC, Rerec on wayleave non-payment

Kenya Power transformer

A Kenya Power vehicle ferries transformers. While the law demands for compensation all land used for the passage of medium and low voltage power lines, KPLC only paid for some while REREC did not pay at all, a World Bank assessment has revealed.

Photo credit: File | Nation Media Group

Two public utility firms, the Kenya Power and Lighting Company (KPLC) and the Rural Electrification and Renewable Energy Corporation (REREC) are on the spot for non-compensation for private and community land they took taken over for the passage of power lines.

A World Bank assessment revealed that although the law demands for compensation all land acquired for the passage of medium voltage (MV) and low voltage (LV) power lines, KPLC only paid for some while REREC did not pay at all.

“This has resulted in complaints where in one area or community, a person receives payment for wayleave acquisition by KPLC and the other does not receive payment either by KPLC or by REREC” the multilateral lender pointed out.

Although KPLC has the Lands and Right of Way Policy, the Property Damage Assessment and Compensation Procedure, and the Wayleave Acquisition Procedure to guide compensation for land buyouts, it doesn’t fully implement their provisions.

“KPLC only pays for wayleave for MV and LV wayleave when there is a budget line for the same in a project, but when these are not budgeted for, KPLC resorts to seeking wayleave donation or consent from affected PAPs (Programme Action Plans) as the strategy for wayleave acquisition” the World Bank observed.

KPLC pays for wayleave acquisition when it has a budget line for the same in a project but does not pay when there is no compensation budget line.

“On its part, REREC does not pay for compensation. On the other hand, both KPLC and REREC do not pay for loss or devaluation of land due to wayleave restrictions” the multilateral lender said.

The revelation puts into focus the ongoing projects as the government races to connect more consumers to the national grid.

Sections 171 and 173 of the Energy Act expressly require utility firms to seek consent from owners of the land before entering and laying cables or electric poles, petroleum or gas pipelines, or drilling exploratory wells.

Even in instances where a private land owner cannot be traced immediately, the law demands that he or she be granted a 15 days’ notice through appropriate mass channels including advertisement in at least two national newspapers or a radio station that covers the local area for two weeks.

KPLC has in recent years found itself dragged to court following squabbles over non-compensation for land taken over.

For example in 2020, a High Court awarded George Joseph Kang’ethe and Ella Karwitha Sh40 million for trespassing into their land in Ngong, Kajiado County. The court said it was wrong for the company to lay the cables without seeking the couple’s consent.

The couple sued the company saying its workers entered the parcel, cut down trees, and put up 10 concrete poles.

In a separate matter, the High Court in June 2020 also awarded Ms Eunice Nkirote Sh14 million for general damages and ‘continuous trespass’ after she found that KPLC entered her land without consent and erected power lines in her farm.

Ms Nkirote explained that KPLC entered her farm in 2013, without her permission, cut down trees, erected high concrete poles, and put high voltage wires thereon.

She complained that she could not use the land because of the high voltage wires nor sell the parcel or build on it.