REREC Under Fire Over Questionable Ksh1.7 Billion Expenditure
Top officials from the Rural Electrification and Renewable Energy Corporation (REREC) are under intense pressure following allegations of misusing public funds totaling Ksh 1.79 billion.
On July 15, REREC’s Chief Executive Officer Rose Mkalama and General Manager of Finance Davis Cheruiyot appeared before the Public Investments Committee (PIC) at the Parliament Buildings to respond to serious questions about how these funds were spent.
The appearance came as the committee, chaired by Pokot South Member of Parliament David Pkosing, reviewed the state agency’s audited accounts for the financial years 2020/21 to 2022/23.
During the session, the MPs flagged multiple cases of irregular and unaccounted-for expenditure, particularly concerning payments made for land survey services.
One of the key issues highlighted by the committee was the huge payments made to surveyors. According to the Auditor General’s report, REREC disbursed substantial amounts of money for land surveys.
However, the maps produced were neither finalized nor submitted to the Directorate of Surveys or to regional offices. This resulted in incomplete and unreliable land documentation, raising doubts about the accuracy and legality of the surveys conducted.
In addition, the audit revealed that wayleaves – legal permissions to use land for infrastructure – in Kakamega County were granted by individuals who were occupying land left behind by deceased persons without proper legal documents such as letters of administration.
This action violated Section 45 of the Law of Succession Act, which clearly prohibits interference with the property of deceased persons without following the required legal procedures.
In response to the concerns, CEO Rose Mkalama told the committee that REREC had since taken corrective steps.
She said the corporation had set up new departments to improve how land matters are handled. “We have now established a Geospatial Department, a Lands Section, and an Advocacy Unit to boost our internal systems, properly analyze land documents, and educate the public on legal processes involved in land and wayleave acquisition,” Mkalama stated.
The committee also took issue with REREC for launching projects in some areas without obtaining the necessary approvals from the County Governments.
This was especially problematic in regions like Kilifi and Turkana, where the land in question is unregistered community land, and the county administrations are the legal custodians.
Further scrutiny was directed at REREC’s financial statements, particularly the Ksh 2.25 billion listed under ‘trade and other payables.’ Of that amount, Ksh 1.19 billion had no supporting documents or invoices, while another Ksh 830 million had been pending for more than three months. The committee demanded clarification on why such large sums remained unaccounted for.
In their defense, REREC officials said the unpaid amounts were supported by Local Purchase Orders (LPOs) and service entry records. They explained that the delays in processing were due to standard retention periods common in procurement procedures.
Another major concern raised by the committee was the payment of Ksh 571 million to three surveying companies. These payments were made without any proper documentation, such as service orders, signed contracts, or survey maps to justify the expenditure.
The Auditor General flagged this as a violation of the Public Procurement and Asset Disposal Act, 2015, and questioned whether the correct procedures were followed in hiring the firms.
The grilling by MPs reflects growing frustration with the lack of accountability in how public funds are used. The committee has promised to push for more transparency and could recommend further investigations into REREC’s financial conduct.
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