Kenya Power summoned over Sh10 billion Tarda compensation delay

Economy

Kenya Power summoned over Sh10 billion Tarda compensation delay

Tuesday, April 9, 2019 21:52

By EDWIN MUTAI

Parliament has summoned the Treasury and Kenya Power #ticker:KPLC to explain why they have failed to implement a House resolution requiring them to pay more than Sh10 billion that the utility firm owes Tana and Athi Rivers Development Authority (Tarda).

Kenya Power and KenGen #ticker:KENGEN were required to pay the money, as compensation following the takeover of power generation and transmissions equipment that was developed by Tarda, to the Treasury for onward transmission to to the agency.

The National Assembly Public Investments Committee (PIC), chaired by Mvita MP Abdulswamad Nassir, said Parliament approved PIC reports directing that the Sh10 billion be paid to Tarda without further delays.

“We will call the Treasury to appear before us to explain whether Kenya Power has paid the money and why Treasury had failed to pay Tarda. We will equally write to the Committee on Implementation of House resolutions to look at this issue. We want the Implementation Committee to give us a status of implementing this resolution to pay Tarda what is owed to them. This means Kenya Power is getting free power which they are selling to Kenyans,” Mr Nassir said.

According to a report by Auditor-General Edward Ouko, the failure by Kenya Power and KenGen to pay Tarda has occasioned a negative working capital of Sh12 billion for the authority.