A parliamentary storm is brewing as the National Assembly’s Public Investments Committee on Commercial Affairs and Energy has summoned Cabinet Secretaries Opiyo Wandayi (Energy) and John Mbadi (Treasury) over a ballooning Sh30 billion debt owed to Kenya Power.
The move comes amid rising public outrage over skyrocketing electricity bills and mounting concerns about the country’s power purchase agreements (PPAs) with Independent Power Producers (IPPs), which many legislators believe are driving up the cost of electricity.
The committee, chaired by Pokot South MP David Pkosing, is also investigating the role of REREC, which is reportedly entangled in a separate multi-million-shilling debt. Key officials and stakeholders are expected to appear before Parliament on August 5, 2025, for a high-level session aimed at uncovering the root causes of the financial crisis affecting the power sector.
The main figures in the investigation include CS Opiyo Wandayi, who leads the Ministry of Energy and is responsible for overseeing Kenya Power and REREC, and CS John Mbadi, whose National Treasury has been criticised for delays in settling electricity subsidy debts.
Also involved is the CEO of Kenya Power, Joseph Siror, who appeared before the committee to answer audit questions and concerns about the utility company’s fragile financial position.
The committee consists of MPs from various regions, including Kaloleni MP Paul Katana, who has become one of the most vocal members advocating for accountability and transparency in the licensing and regulation of IPPs. According to Katana, some power producers were licensed under suspicious circumstances, possibly with the support of influential individuals.
The summons were issued this week during a sitting of the Public Investments Committee at Parliament Buildings in Nairobi. The key meeting is scheduled for Tuesday, August 5, 2025, when the summoned CSs and energy sector agencies are expected to give a full account of the debt and address growing scrutiny over PPAs.
The investigation was prompted by a forensic audit by the Office of the Auditor General, which exposed significant financial irregularities and debts within the energy sector. Chief among them is the Sh30 billion owed to Kenya Power, arising from unpaid government obligations linked to the Rural Electrification Scheme (RES). Under the RES, Kenya Power implements electrification projects across rural Kenya on behalf of the Ministry of Energy, which is expected to fund the programme.
However, the government has allegedly failed to remit the necessary funds, leaving Kenya Power heavily exposed. This has not only strained the utility’s liquidity but has also contributed to high electricity tariffs passed down to consumers.
Committee Chair David Pkosing condemned the current state of power pricing in Kenya, stating:
“The people of Kenya are paying too much for electricity, and one of the suspects is IPPs and their power purchase agreements. We know they might be owned by the who’s who in our country, which raises suspicion. We will use the forensic audit to make firm recommendations that serve Kenyans better. We must change how these agreements work for the good of the country.”
Kaloleni MP Paul Katana supported the committee’s aggressive stance, calling for broader accountability:
“This has been a serious issue. Last time, we asked how quickly these power companies were licensed and learned that many powerful leaders were behind them. The Energy CS must tell us how many companies are licensed, the kind of agreements in place and whether they are serving Kenyans as intended.”
“Appearing before the committee, Kenya Power CEO Joseph Siror offered a technical explanation for the cost of electricity, attributing it to the type of generation technologies employed by different IPPs.
“The cost of power depends on the technology. Historically, purchases have been expensive, but going forward, costs should come down as we retire old and costly IPPs,” said Siror.
However, he warned that Kenya cannot eliminate all IPPs without destabilising the national grid:
“We retired one last year. But you cannot retire all of them. In the past three months alone, we’ve had to load-shed, which means blackouts for many areas. If we turned off all the IPPs today, more than half the country would face blackouts because we wouldn’t generate enough electricity to meet demand.”
The committee agreed that while some IPPs are necessary to meet electricity demand, the terms of the agreements must be reviewed. The lawmakers committed to scrutinising both past and future PPAs to ensure consumer protection and transparency.
“We must find an arrangement that is cost-effective for Kenyans by balancing production with demand,” said Pkosing. “We should also work towards cheaper technology for power generation so electricity becomes more affordable for all.”
The outcome of the August 5 session is expected to shape the future of Kenya’s electricity pricing model. The committee has vowed to make firm recommendations, including possible renegotiation or cancellation of exploitative agreements and holding accountable those found to have played a role in the current crisis.
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