MPs grill KenGen chiefs over Sh370m feasibility study bill

Members of Parliament are investigating how the Kenya Electricity Generating Company (KenGen) spent over Sh370 million on feasibility studies, some of which were carried out without the necessary approval from the Ministry of Energy.

The Public Investments Committee on Commercial Affairs and Energy on Tuesday questioned KenGen Managing Director Peter Njenga over the expenditure, raising concerns that several feasibility studies were commissioned without clear plans, land acquisition, or risk assessments—effectively putting the cart before the horse.

Nyeri Town member of parliament Dancun Maina questioned why in many cases, consultants were hired before key requirements were met, including identifying project sites or securing land, undermining the credibility and utility of the studies.

“They went ahead with a feasibility study before even identifying where the project would be located. How do you spend millions without knowing where the project is going?” asked the Nyeri Town lawmaker.

The probe follows questions raised by the Auditor General over flagship projects by KenGen, whose feasibility studies were conducted more than ten years ago are yet to be effected to date.

The committee, led by chairperson David Pkosing, demanded to know who initiated the studies, the strategic plans and procurement records supporting them, and details of the companies awarded the consultancy tenders.

Of particular concern was a 2014 feasibility study that cost Sh163 million. MPs said the Ministry of Energy did not approve it, and yet KenGen is now seeking new consultants to update the decade-old findings.

"How do you justify spending more money to update a study that should never have proceeded without the Ministry’s green light in the first place? This cycle of feasibility studies has become a money pit,” said Maina.

“And it has taken now, like, more than 10 years, it's now that they are saying that they got their approval from the Ministry of Energy. And again, now they are procuring for another consultant to update, to update the feasibility study that was done, like, 11 years ago. So this would be another circus.”

KenGen Managing Director Peter Njenga defended the projects, pointing out that the country’s energy demand is rising, calling for new investments.

The Managing Director said the studies were part of long-term strategic planning and were aimed at identifying energy generation potential, particularly from wind and solar sources.

“Yes, these projects are actually in the strategic plan for KenGen,” said Njenga

He also admitted that projects like the proposed Meru Wind Farm were stalled due to land acquisition challenges, despite studies being completed years earlier.

KenGen’s General Manager for Strategy and Projects, Elizabeth Muli, said the feasibility studies helped identify optimal project sites and informed subsequent land acquisition.

However, MPs were unconvinced, pointing out that the National Land Commission was not always involved in the process.

The committee also scrutinised the controversial Ngong Wind Project, where KenGen had initially installed 25.5 MW of capacity and later sought to expand it by 10 MW.

MPs questioned how much of the Sh57 billion allocated for the project had already been sunk, especially after aviation authorities raised objections about turbine interference with flight signals.

“Are we looking at a white elephant?” asked Pkosing “Who is going to pay for these mistakes if the entire project is halted?”

The committee demanded full disclosure, including the names of consultants paid, the terms of reference for each study, and whether those projects have yielded any return on investment.

“What is clear is that there’s an unhealthy appetite across government institutions to launch new projects without completing existing ones. This kind of fiscal indiscipline cannot continue,” said Murang’a County women's representative Betty Maina.

The committee directed KenGen to submit all supporting documents—strategic plans, procurement records, consultant lists, and feasibility reports—for review before a final determination is made.