KENYA · ENERGY
Key Facts
- The finding Two thermal power contracts flagged as irregularly awarded, worth 228.9 million Kenyan shillings, or Sh228.9 million (about US$1.8 million).
- The places Fuel-fired power stations, not linked to the national grid, serving the northern Kenyan towns of Marsabit and Wajir.
- The change One contract was raised on 1 March 2026 from Sh99.0 million to Sh123.8 million (about US$763,000 to US$953,000).
- The rules Kenya’s Auditor-General cites direct awards without competition and backdated start dates under procurement law.
- Not known The value of the Wajir contract is not stated.
Kenya’s Auditor-General, the state’s public-spending watchdog, has flagged two contracts of Kenya Power, the state-controlled electricity utility, for off-grid thermal generation, meaning fuel-fired power for towns not linked to the national grid, as inflated and irregularly awarded, Business Daily, a Nairobi newspaper, reported on Tuesday 10 November 2026. Business Daily puts the combined value at Sh228.9 million (about US$1.8 million at 129.86 shillings per US dollar on 10 November).
What the Auditor Found
According to Business Daily, the audit report by Auditor-General Nancy Gathungu is dated 17 September 2026. It says the Marsabit contract, signed on 30 July 2025, rose on 1 March 2026 from Sh99.0 million (about US$763,000) to Sh123.8 million (about US$953,000), an increase of Sh24.8 million (about US$191,000).
The Wajir contract was signed on 13 October 2025, Business Daily says. The auditor cites Section 91(1) of the Public Procurement and Asset Disposal Act, Kenya’s public buying law, on competitive bidding and Section 139(3) on retrospective approvals, according to the newspaper.
Business Daily reports that new contracts could not be concluded before the old ones expired because of delays in confirming funding from the State Department of Energy, a government department. Kenya Power had asked the energy ministry for the money on 30 September 2024, the paper adds.
Why It Matters
The flagged sum is under 1% of the Sh24.99 billion (about US$192 million) profit after tax that Kenya Power announced on 18 September 2026 for the 2025/26 year. The issue is procedure rather than size, because Kenya Power is a company listed on the Nairobi Securities Exchange in which the government holds a controlling stake, and investors judge how it buys power.
What Is Not Known
Business Daily gives no value for the Wajir contract, and the Auditor-General’s report itself could not be opened when we checked. No dated follow-up, such as a parliamentary hearing, has been announced that we could find.
What It Means for You
For investors in Kenya Power shares and for readers who follow Kenyan public spending, this is a procurement finding, not a ruling of wrongdoing. The figures are the auditor’s findings as relayed by Business Daily.
More from The Rio Times: Kenya news, a Kenyan gas maker adds solar to cut grid use, and who runs Kenya.
Frequently Asked Questions
What did Kenya’s Auditor-General flag at Kenya Power?
Business Daily reports that two contracts for off-grid thermal generation in Marsabit and Wajir were awarded directly, without competition, and that the Marsabit contract was raised after signing. The combined value is Sh228.9 million (about US$1.8 million).
How big is the sum compared with Kenya Power’s profit?
It is about 0.9% of the Sh24.99 billion (about US$192 million) profit after tax that Kenya Power announced for 2025/26. The profit figure comes from the company’s own results release of 18 September 2026.
Sources: Kenya Power, results for the financial year 2025/26, 18 September 2026; Business Daily, KPLC inflated, irregularly awarded Sh228m thermal power contracts, 10 November 2026. Exchange rate: 129.86 Kenyan shillings per US dollar, 10 November 2026.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error