Kenya’s efforts toward rural electrification and renewable energy have faced a significant credibility setback. An in-depth review of the Auditor General’s reports for the financial years 2020/21 to 2022/23 has revealed a troubling pattern of financial mismanagement, wasteful expenditure, and legal breaches by the Rural Electrification and Renewable Energy Corporation (REREC). The bitter irony is that an agency responsible for illuminating rural Kenya seems to be mired in systemic failure.
The figures are shocking. In just one year (2020/21), REREC’s financial statements were filled with discrepancies amounting to over Kshs. 8.5 billion between ledger entries and reported figures. Such mismatches are not simple bookkeeping errors; they indicate a serious failure in financial accountability. In any other setting, these discrepancies would lead to resignations, arrests, or both. However, in Kenya, the culture of impunity continues.
The audit also revealed that Kshs. 5 billion worth of inventory lacked supporting valuation reports or stock movement schedules. Even more concerning, 145 faulty transformers were never recorded in the inventory system. These are not minor oversights; they point to systemic negligence.
Then comes the shocking misuse of the Petroleum Development Levy. Over Kshs. 4.7 billion was funnelled into electrification projects, a direct violation of the Petroleum Development Fund Act, which restricts those funds for oil industry development. The fact that this misappropriation occurred repeatedly across multiple fiscal years suggests it was no accident, but a calculated decision made with full knowledge of the legal implications.
And if you thought that was damning enough, consider the Kshs. 1.6 billion paid for land survey services to unnamed firms, for unspecified projects, without proper procurement, budgeting, or supporting documentation. As of the last audit, the matter had been forwarded to the Directorate of Criminal Investigations. Yet, the transaction was not disclosed as a contingent liability in the financial statements. This is not just financial opacity; it is a deliberate attempt to cover up corruption.
Despite these glaring issues, REREC continued to receive billions in grants and investments, all of which were poorly accounted for. The 2022/23 audit flagged Kshs. 2.3 billion in fixed deposit investments made without Treasury approval, as well as an additional Kshs. 123 million sunk into an abandoned construction project in Kisumu that has remained unfinished since 2017.
But perhaps the most egregious failure lies in the human cost. Projects worth hundreds of millions were completed, yet the target beneficiaries remain unconnected due to failures by Kenya Power to fulfil their end of the service agreement. Communities promised light remain in darkness while billions vanish into the bureaucratic ether.
The Kenyan taxpayer is paying dearly for a bloated, mismanaged institution that has become a liability. Instead of accelerating energy access, REREC is hemorrhaging funds, flouting procurement laws, and violating the Employment and Public Finance Management Acts with impunity.
This audit report is not merely a documentation of financial errors it is a chronicle of betrayal. REREC’s mandate is too critical for the nation’s development to be left in the hands of reckless administrators. What’s required now is more than just audit queries and parliamentary briefings. Kenya needs a radical overhaul of REREC’s leadership, criminal investigations into the massive losses, and a transparent restructuring plan.
