The Senate has launched an investigation into a Sh20 billion World Bank loan after it emerged that nearly Sh9.5 billion could remain unutilised by the time the financing window closes later this year.
The funding, secured in 2017 under the Kenya Off-Grid Solar Access Project (KOSAP), was intended to expand electricity access to thousands of households in underserved areas. However, years after the loan agreement was signed, many targeted communities are still waiting to benefit.
Appearing before the Senate Energy Committee on Tuesday, officials from the Rural Electrification and Renewable Energy Corporation (REREC) were questioned over the slow implementation of the project and the circumstances under which the loan was approved.
Lawmakers, led by Homa Bay Senator Moses Kajwang’, questioned why the government entered into the Sh20 billion financing agreement on September 5, 2017, shortly after the Supreme Court nullified the presidential election, asking who authorised the borrowing during the political uncertainty.
Kajwang’ argued that the Energy Ministry should account for the decision, warning that Parliament’s oversight committees could be called upon if satisfactory explanations are not provided.
The scrutiny follows findings by the Auditor-General indicating that, even if the current budget is fully spent, only about 53 per cent of the World Bank credit will have been utilised by the project’s September 2026 deadline, leaving nearly Sh9.5 billion undisbursed.
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The KOSAP programme was designed to improve access to electricity and clean water across 14 marginalised counties.
Tana River Senator Danson Mungatana also questioned whether REREC had the technical and financial capacity to complete the outstanding work before the funding expires. He further sought clarification on pending bills, possible duplication of maintenance funding between REREC and county governments, and whether some of the reported projects exist on the ground.
In response, REREC Chief Executive Officer Rose Mkalama defended the implementation process, saying the agency expects to complete the project by September 30, 2026. She maintained that the loan agreement and project execution were not influenced by political events, attributing delays to procurement procedures, logistical difficulties in remote areas and community engagement, while noting that most land acquisition disputes have since been resolved.
Project Manager Francis Mutua told the committee that REREC is implementing only the World Bank-funded component worth about $31 million (approximately Sh4 billion) out of the project’s total $150 million (Sh20 billion) value. He added that completed infrastructure will be handed over to Kenya Power and the respective county governments for operation and maintenance.
Despite the assurances, senators indicated they would summon both current and former officials from the Energy and National Treasury ministries to explain the circumstances surrounding the borrowing and the prolonged delay in utilising the funds.
The inquiry comes amid renewed concerns over Kenya’s management of external borrowing after it emerged that the country paid nearly Sh8 billion in commitment fees over the past five years on loans that remained largely undrawn due to delayed project implementation.
