Ketraco Yet to Pay Landowners Sh4 Billion in Wayleave Compensation, Audit Shows

Nairobi, Kenya — September 26, 2025 (EAT).

A forensic audit tabled in Parliament has revealed that the Kenya Electricity Transmission Company (Ketraco) has outstanding wayleave compensation arrears of approximately Sh4.03 billion, owed to landowners affected by transmission infrastructure projects. 

What the Audit Found

• The audit report shows that across seven major transmission line projects, Ketraco has not fulfilled compensation for land, crops, structures, and easements. 

• Total claims for these projects amount to Sh17.02 billion, of which Sh12.99 billion had already been settled before the audit. 

• The balance of Sh4,034,962,691 remains unpaid as of June 2023, according to the audit. 

• Project-by-project breakdown includes:

  • Ethiopia–Kenya Transmission Line — unpaid sum of Sh314.3 million

  • Turkwel–Ortum–Kitale Transmission Line — Sh972.6 million outstanding

  • Kenya–Tanzania Transmission Line — Sh321.8 million outstanding

  • Nairobi Ring Road Transmission Line — ~Sh149.4 million pending after most were paid 

Why This Matters

• Livelihood Impacts: Many of the affected landowners depend on their property for farming, housing, or small businesses; delays in compensation create financial hardship.

• Trust Deficit: Persistent non-payment undermines public trust in state agencies and fuels grievances among rural communities.

• Project Delays & Legal Risk: Unresolved compensation liabilities may lead to legal suits, injunctions, or resistance to future transmission infrastructure.

• Fiscal Strain: The outstanding amounts—on top of new projects—add pressure to Ketraco’s budget and borrowing plans.

Stakeholders & Reactions

• Auditor-General / Parliamentary Committees: The audit serves as a basis for oversight action and demands from MPs for accountability.

• Ketraco / Ministry of Energy: Expected to respond with clarifications regarding cash flow, prioritisation, and timelines for settlement.

• Affected Landowners & Communities: Will likely press for expedited payments, possibly through court or public pressure.

• Development Partners / Donors: Many of the transmission lines are donor-funded; partners may demand adherence to compensation standards as part of funding conditions.

What We Don’t Yet Know

• The timeline within which Ketraco intends to make these payments.

• Whether legal action has already been initiated by affected landowners.

• The funding source for the payments—whether via appropriations, loans, or internal reallocation.

• How the arrears are being prioritised relative to other operational and capital liabilities.