REREC under fire for failure to account for Sh2.25 billion in audit queries

The Rural Electrification and Renewable Energy Corporation (REREC) is on the spot over failure to fully account for  Sh2.25 billion.  

A probe by the Public Investments Committee (PIC) on Commercial Affairs and Energy exposed the expenditure liability listed as “trade and other payables.”

Of this, Sh1.19 billion lacked supporting documents, while Sh830 million had remained unpaid for over 90 days.

Another Sh571 million was paid to three survey firms without clear records of service orders, contracts, or deliverables.

Committee chair David Pkosing (Pokot South MP), grilled REREC Chief Executive Officer Rose Mkalama and General Manager for Finance Davis Cheruiyot over the expenditures.

Among the most damning issues raised was the irregular expenditure of Sh1.79 billion on land survey services that lacked proper documentation or approvals from relevant government agencies.

According to the Auditor General, REREC paid the amount to surveyors without updating official records with the Directorate of Surveys or regional offices.

Consequently, land maps remain incomplete and legally questionable, casting doubt on the integrity and value of the surveys conducted.

“This is a clear case of laxity, and possibly collusion, at the expense of the public. Institutions like REREC are central to rural development. When accountability fails, the most vulnerable Kenyans pay the price,” said Pkosing.

REREC boss – Mkalama, acknowledged the breach and revealed that internal investigations had led to the dismissal of five staff members.

She added that the matter has also been referred to the Directorate of Criminal Investigations (DCI) for further action.

Further investigations for the period between 2021 and 2023 revealed that in some areas, such as Kakamega County, wayleaves were granted by individuals without legal authority, violating succession laws that prohibit the handling of deceased persons’ property without court approval.

“We have now established a Geospatial Department, a Lands Section, and an Advocacy Unit to enhance internal checks and ensure compliance with land acquisition laws,” she told the committee.

The audit also found that REREC began projects on adjudicated community lands in counties like Turkana and Kilifi without obtaining mandatory consents from county governments, which serve as legal custodians of unregistered community land.

Although REREC claimed to have received clearance for the Lopacho Village project in Turkana, it conceded to lapses in obtaining proper approvals for works in Takaye Village, Kilifi County.

Concerns also arose over mini-grid projects in Wajir, Mandera, Garissa, and Turkana, where construction commenced without securing land titles. This, the Auditor General warned, posed a risk to both public and donor-funded investments.

Mkalama said the corporation was addressing the issue.

 “We are working with county governments to formalise land ownership. Part Development Plans have been approved and surveys are underway. Garissa is already complete and the remaining sites should be finalised by FY 2025/26,” she said.