Kenya Power and Lighting Company (KPLC) is once again under the parliamentary spotlight as lawmakers question its financial health, governance, and accountability amid revelations of ballooning debts, forex losses, and irregular procurement practices.

The concerns came to the fore when the company’s top management, led by Managing Director Dr. Joseph Siror, appeared before the National Assembly’s Public Investments Committee on Commercial Affairs and Energy (PICCAE) to respond to audit queries covering the 2020/21 to 2022/23 financial years.

The session, chaired by Pokot South MP David Pkosing, painted a grim picture of a company struggling to keep the lights on both literally and financially.

According to the Auditor-General’s report, KPLC recorded a net loss of KSh 4.4 billion in the last financial year, coupled with a negative working capital of KSh 51 billion. This marked the utility’s seventh consecutive year of financial distress, raising doubts about its ability to continue as a going concern.

“There exists a material uncertainty on the company’s ability to meet its obligations as they fall due,” the Auditor-General noted, a statement that sent ripples through the Committee room.

Dr. Siror, however, painted a slightly more optimistic picture. He told the MPs that the company was slowly clawing back to stability, thanks to a combination of tariff reviews, cost-cutting measures, and operational restructuring.

“Our working capital deficit has reduced from KSh 75 billion in 2020 to KSh 51 billion in 2023. With the ongoing reforms and revenue growth, we expect to turn a corner soon,” he said.

Kenya Power Unpaid Bills

MPs questioned why government institutions continued to cripple KPLC with unpaid bills, which currently stand at over KSh 26 billion. The biggest culprits include the Rural Electrification Scheme and various county governments that have failed to pay for street lighting projects.

The Committee heard that even after a Cabinet directive in 2019 to refund KPLC KSh 19.4 billion, not a single cent has been remitted.

“How can the government expect efficiency from Kenya Power when it’s one of the biggest defaulters. We must walk the talk when it comes to paying our debts,” posed Hon Pkosing.

Adding to the company’s woes are massive foreign exchange losses amounting to KSh 23 billion, driven by exposure to dollar-denominated loans and power purchase agreements.

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Kenya Power Petition

Dr. Siror said the firm had petitioned the Energy and Petroleum Regulatory Authority (EPRA) to review the foreign exchange adjustment mechanism by 2026, to cushion consumers from fluctuating rates.

Auditors also unearthed irregular procurement cases, including the controversial purchase of a 10-acre parcel of land in Machakos at KSh 75 million, nearly double the initial valuation. In addition, KPLC reportedly made direct purchases of spare parts worth millions without competitive tendering or proper documentation.

The Committee further questioned the payment of KSh 488 million in old supplier invoices dating back almost a decade, and an exit package of KSh 26.8 million to a former Managing Director, paid without approval from the State Corporations Advisory Committee.

Equally worrying, Kenya Power continues to lose nearly 23 percent of the electricity it distributes, well above the EPRA-approved limit of 19.5 percent. The losses translating into billions of shillings in unrecovered energy are blamed on technical faults, power theft, and weak monitoring systems.

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Meanwhile, over 21,000 customer connection projects worth KSh 12 billion remain incomplete, some dating back 11 years, despite full payments by customers. MPs questioned how a company could be chasing financial sustainability while sitting on dormant projects.

Hon. Pkosing and his committee members said the revelations reflected deeper institutional problems that required urgent reforms beyond boardroom talk.

“The people of Kenya cannot continue paying for inefficiencies, corruption, and poor management. If Kenya Power is to survive, accountability must be non-negotiable,” said the Pokot South MP.

He added that the Committee would make firm recommendations to ensure prudent use of public resources and better oversight over the utility’s management.

For millions of Kenyans, Kenya Power’s struggles are not just numbers on a balance sheet they translate into higher bills, unreliable supply, and delayed connectivity.

Turning Things Around

Despite the gloom, Dr. Siror insisted the company was committed to turning things around.

“We have made progress in reducing technical losses, improving billing accuracy, and engaging the government on debt settlements. The goal is to make Kenya Power self-sustaining once again,” he said.

As Parliament tightens scrutiny, the country watches closely to see whether Kenya Power can finally emerge from years of turbulence or whether it will remain stuck in the dark.

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The Kenya Power and Lighting Company (KPLC) Electricity House located along Harambee Avenue on May 27, 2025. Photo | Francis Nderitu