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August 15, 2025
3d ago

How Govt Lost Billions in Botched Deal With Spanish Company

How Govt Lost Billions in Botched Deal With Spanish Company

The deal had been meant to benefit both Kenya and Uganda...

✨ Key Highlights

Kenya reportedly lost Ksh4.5 billion in a failed cross-border electricity project with a Spanish company, Inabensa, according to a report presented to the National Assembly. The deal, involving the Kenya Electricity Transmission Company (KETRACO), was for a powerline connecting Kenya and Uganda. After the contract’s 2016 termination, a legal battle ensued, with a judge ruling in favor of Inabensa, ordering Kenya to pay the arbitration fee.

  • Kenya was ordered to pay Ksh4.5 billion in arbitration to Spanish contractor Inabensa after losing appeals, including at the Supreme Court.
  • The project was a 132-kilometre, 400 kV double-circuit powerline from Lessos, Kenya, to Tororo, Uganda.
  • KETRACO Managing Director John Mativo also faced questioning over irregularities in the Loiyangalani–Suswa Transmission Interconnector project and Ksh2.7 billion in outstanding wayleave compensation.

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