The Controller of Budget Dr Margaret Nyakang’o has raised alarm over a controversial loan reportedly taken to fund underground power cabling in Nairobi, revealing that Kenya Power – the primary beneficiary – was unaware of the arrangement.
In a startling disclosure, the budget watchdog indicated that funds were secured for the project without the knowledge or involvement of the national electricity distributor, raising serious questions about transparency and accountability in public borrowing.
According to the Controller of Budget, the loan was intended to support the installation of underground power infrastructure within the capital, a project typically undertaken to improve reliability and reduce outages caused by overhead lines. However, the revelation that Kenya Power had no prior knowledge of the financing has sparked concerns over possible procedural lapses and governance failures.
The development has also triggered scrutiny over which agency initiated the loan, how the funds were processed, and whether due diligence was followed in approving the project. Analysts warn that such discrepancies could expose taxpayers to unnecessary debt obligations without clear oversight or implementation structures.
The revelations are expected to pile pressure on relevant government agencies to provide clarity on the matter, even as calls grow for a comprehensive audit into the borrowing and execution of infrastructure projects.
The disclosure adds to ongoing concerns about Kenya’s rising public debt and the need for stricter controls to ensure that borrowed funds are used transparently and for their intended purposes.