Details are now emerging of a mega power energy scandal which has seen the government lose 18 billion. Of note is that it is likely to stain former Prime Minister Raila Odinga who, incidentally, wasn’t involved in the initial deal which records indicate, was gotten into by the Kenyan government on 27th January, 2017. Even worse for the Orange Democratic Movement party leader is that, apart from the close working relationship that he has established with the president since the Handshake, the Daily Nation reported on a plan by the president to include some of Raila’s nominees in the government following a looming cabinet reshuffle in the works. This would put Mr. Raila Odinga squarely in the power energy scandal which involves wastage of funds due to laxity.
Taxpayers paid private investors Sh18 billion due to delays in connecting the Lake Turkana Wind Power (LTWP) to the national grid.
The huge payout arose from a 381-day delay in completion of the 428km high-voltage power line from Marsabit to Suswa sub-station in Narok, the main interchange for power from different sources.
LTWP commissioned its 310 megawatts power plant on January 27, 2017 but the government, which built the evacuation line did not complete the works until September 24, 2019.
“Due to delays in completing the transmission line, energy charge was not evacuated from LTWP plant resulting in accrued penalties to the government referred to as deemed generated electricity (DGE) claims amounting to Sh18,499,082,672 (euros 167,261,145) for the period January 27, 2017 to September 10, 2019,” Nancy Gathungu said in a special audit of LTWP.
Already, the government has paid Sh10.3 billion to owners of LTWP leaving a balance of Sh9.8 billion (euros 81,577,128).
“The balance (Sh9.8 billion) is to be recovered by LTWP Ltd through a tariff increase by Kenya Power and Lighting Company (KPLC) of Euros 0.00845/Kwh for the period June 1, 2018 to May 31, 2024 (DEG recovery period) and likely to be borne by the consumers,” Ms Gathungu said.
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