Auditor General Nancy Gathungu has raised concerns about the Rural Electrification and Renewable Energy Corporation (Rerec) for its ongoing inability to finalize multi-billion projects.
In her report for the fiscal year 2022/2023, Gathungu scrutinized the execution of rural electrification projects in five different regions, as well as the implementation of six projects in Mageta, Takawiri, and Ngodhe. Additionally, she highlighted the prolonged delay in funding essential projects.
She was also concerned by the long outstanding pending bills, low project performance, lack of Environmental Impact Assessment of the project sites and low budget absorption.
As per the report, implementation of the rural electrification projects in five regions was to commence in 2013 and was to be undertaken at a cost of KES 5.8 billion. The completion deadline was set for December 30, 2024. Despite the National government arranging financing agreements with four financiers, the projects have experienced significant delays.
“Management did not explain how they intend to fast- track the implementation of the projects considering the fact that the financing agreements will lapse on 30 December, 2024.”reads the report in part
The Auditor General explained that according to the Corporation’s statement of receipts and payments, KES 3.8 billion had so far been incurred on the projects with only a few months to the expected completion date.
The audit observed that lighting fixtures were yet to be installed, civil works had not been done and the paint on ceiling board was peeling off.
Additionally, the report highlights several concerns: no workers were present at the project sites, civil works had not commenced, some solar panels remained unfixed, windows were broken, floors were cracked, lighting fixtures had not been installed, and perimeter walls had not been constructed.
