Kenya Power Fuel Tender Sparks Legal and Financial Concerns
The Kenya Power finds itself at the center of controversy after awarding a fuel tender worth Sh14.37 billion, significantly exceeding its Sh7.6 billion budget.
This development, flagged by Auditor-General Nancy Gathungu, violates the Public Procurement and Asset Disposal Act, 2015, which requires sufficient budget approval before issuing tenders. 
The Kenya Power fuel tender has raised questions about compliance, accountability, and the management of critical resources.
Auditor-General Questions Kenya Power Fuel Tender Process
The Auditor-General stressed that Kenya Power’s Evaluation Committee recommended awarding the tender despite the quoted prices surpassing the allocated budget.
The Public Procurement Act explicitly mandates that procurement should not commence unless adequate funds are reflected in the approved budget. Nevertheless, the company proceeded, creating legal and financial risks.
“This decision violates Section 53(8) of the Public Procurement Act, which requires sufficient funds to meet contractual obligations,” stated Auditor-General Nancy Gathungu. She pointed out that such breaches undermine Kenya Power’s accountability and compliance with procurement laws.
Moreover, Dahian urged Ugandan farmers to invest in avocado cultivation, emphasizing the steady and growing demand from European markets. Consequently, this partnership represents a crucial step for Uganda, as it strengthens the country’s position as a key player in the global avocado supply chain.
Kenya Power Faces Fallout Over Fuel Tender and Theft Scandal
Compounding Kenya Power’s challenges, the Auditor-General’s report exposed extensive theft of fuel allocated to off-grid stations in Turkana County. Notably, between October 2021 and December 2023, Kenya Power employees worked in collusion with tanker drivers and security guards to steal over 1.1 million liters of diesel valued at Sh207.65 million.
In a related disclosure, Auditor-General Nancy Gathungu brought these alarming findings to light, which prompted Kenya Power to launch internal investigations. Furthermore, the stolen fuel underscores severe operational inefficiencies and mismanagement within the organization, thereby amplifying scrutiny over the company’s practices.
Rising Costs Passed to Consumers
The financial strain caused by these procurement issues and fuel theft ultimately affects consumers. Kenya Power transfers the cost of fuel for off-grid stations to all electricity users nationwide through the Fuel Energy Charge, a monthly adjustment regulated by the Energy and Petroleum Regulatory Authority (EPRA).
As fuel prices soar, this pass-through mechanism increases electricity bills for millions of Kenyans. Critics argue that such inefficiencies and mismanagement disproportionately burden consumers already struggling with high living costs.
The fuel tender in Kenya Power remains a sore spot regarding legal compliance, budget management, and operational inefficiencies. Evidence of financial malpractices and resource mismanagement mounts, putting pressure on the company for procurement process reform and accountability.
As the investigations continue, one may ask, how is Kenya Power going to restore confidence in its ability to provide reliable and affordable electricity to all?
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