REREC put on the spot over Sh1.79 billion irregularly spent on land survey services
MPs also alarmed by alarmed by Sh2.25 billion listed as trade and other payables. Of this, Sh1.19 billion was unsupported and un-invoiced, while Sh830 million had been outstanding for over 90 days
The Rural Electrification and Renewable Energy Corporation (REREC) is on the spot over alleged financial mismanagement, including the irregular expenditure of over Sh1.79 billion on land survey services.
This is after Auditor General Nancy Gathungu revealed that REREC made hefty payments to surveyors without updating records with either the Directorate of Surveys in Nairobi or regional offices.
As a result, official land maps remain incomplete and inaccurate, raising concerns about the legality and value of the surveys conducted.
In Kakamega County, the audit revealed that wayleaves were granted by individuals occupying land left behind by deceased persons, without valid letters of administration. This was flagged as a direct violation of Section 45 of the Law of Succession Act, which prohibits intermeddling in a deceased person’s estate.
Appearing before the National Assembly Public Investments Committee (PIC) on Commercial Affairs and Energy to respond to a series of damning audit queries. REREC’s CEO Dr Rose Mkalama, who was accompanied by General Manager of Finance Davis Cheruiyot, acknowledged the oversight and outlined reforms under implementation.
“We have now established a Geospatial Department, a Lands Section, and an Advocacy Unit to strengthen internal controls, analyse land documents thoroughly, and sensitise the public on lawful land and wayleave acquisition,” she told the committee on Tuesday.
The committee, which chaired by Pokot South MP David Pkosing, which examining the corporation’s audited financial accounts for the years 2020/21 to 2022/23, also raised concerns over REREC’s activities on adjudicated community lands in counties like Turkana and Kilifi, where the Corporation commenced projects without securing the mandatory consents from County Governments, the legal trustees of unregistered community land.
While REREC claimed to have received consent from Turkana County for the Lopacho Village project, it admitted procedural lapses in Takaye Village in Kilifi’s Ganda Ward. Dr Mkalama assured the committee that corrective measures were underway.
The audit also took issue with mini-grid power stations built in Wajir, Mandera, Garissa, and Turkana, constructed without securing legal titles for the community land. The absence of formalisation was cited as a risk to both public and donor funds.
“We’re working closely with County Governments and local communities. Part Development Plans have been approved for most sites. Cadastral surveys are underway, with Garissa already completed. The rest will be finalised by FY 2025/26 before submission to the National Land Commission for titling,” Dr Mkalama said.
The committee was alarmed by Sh2.25 billion listed as trade and other payables. Of this, Sh1.19 billion was unsupported and un-invoiced, while Sh830 million had been outstanding for over 90 days.
REREC maintained that the amounts were backed by Local Purchase Orders and service entry sheets and delays were due to standard retention periods.
The committee also established that Sh571 million was paid to three survey firms for unspecified projects.
The Auditor General found no service orders, contracts, or maps raising concerns about compliance with the Public Procurement and Asset Disposal Act, 2015.
Dr Mkalama admitted the lapse but revealed that an internal audit led to significant action.
“Following internal investigations, five staff members found culpable for the irregular payments were dismissed. We have also requested the DCI to take up the matter for further action,” she stated
“This is a clear case of laxity, and possibly collusion, at the expense of the public. Institutions like REREC are at the heart of rural development. When such critical agencies falter in accountability, the poorest Kenyans suffer the most,” said Pkosing.
“We must reinforce financial discipline in all public entities. The Committee’s oversight is not just procedural or a committee on paper; it is a moral responsibility to ensure public trust is not betrayed.” said the chairman.
The committee is expected to table a comprehensive report with its findings and recommendations, which may include further investigation by law enforcement agencies and calls for sweeping policy reforms at REREC to bolster transparency and oversight.
