Tag: John Mativo

  • Sh400 Million Transformer Procurement Scam Leads to John Mativo’s Dramatic Sacking From KETRACO

    Sh400 Million Transformer Procurement Scam Leads to John Mativo’s Dramatic Sacking From KETRACO

    The dramatic downfall of Kenya Electricity Transmission Company (KETRACO) Managing Director John Mativo has exposed a web of procurement irregularities that cost taxpayers approximately Sh400 million and raised serious questions about oversight in Kenya’s energy sector.

    Dr. Mativo, who was unceremoniously sacked on September 19, 2025, nearly a year before completing his three-year term, fell victim to a scandal involving the botched transportation of a critical 70-tonne transformer that was destined to improve power supply across Western Kenya.

    The saga began with KETRACO’s procurement of two high-voltage transformers for the strategic 220 kV Turkwel–Ortum–Kitale transmission project.

    While one 40-tonne unit was successfully installed at the Ortum sub-station, the larger 220/132 kV, 90 MVA transformer worth Sh400 million met a catastrophic end during transportation from Mombasa port.

    Sources familiar with the matter reveal that the massive transformer, earmarked for installation at the Kitale sub-station, was transported without proper contractual arrangements or insurance cover.

    The expensive equipment reportedly fell off the transporter’s truck during the journey, rendering it completely destroyed and representing a staggering loss to taxpayers.

    The incident triggered a comprehensive investigation that traced the procurement irregularities back to KETRACO’s senior management.

    Board meeting sources confirmed that the transportation arrangement lacked the fundamental safeguards required for such high-value, sensitive equipment.

    A senior Ministry of Energy official, while confirming disciplinary action, emphasized that state corporations must strictly adhere to procurement protocols.

    “Management is expected to tick all the boxes before awarding. The ministry doesn’t micro-manage agencies at all. They procure end to end—from floating the tender, evaluating, awarding—and all that should be followed to the letter,” the official stated.

    The investigation revealed a pattern of procedural violations that extended beyond the transportation mishap.

    A senior procurement official had already been suspended before Mativo’s turn came as the accounting officer ultimately responsible for the company’s operations.

    When contacted about the allegations, Mativo appeared evasive, initially claiming he “didn’t understand the questions” before abruptly ending the conversation.

    He maintained that the disputed procurement “had not reached a contract stage,” a claim that investigators found difficult to reconcile with the actual transportation and subsequent destruction of the equipment.

    The scandal has broader implications for Kenya’s energy infrastructure development. The destroyed transformer was crucial for improving power quality and reliability across several counties in Western Kenya, and its loss has delayed critical improvements to the national grid.

    Mativo’s exit comes at a particularly sensitive time for KETRACO, which has been aggressively pursuing major transmission projects through Public Private Partnerships.

    The company was already dealing with the fallout from the cancelled Adani Group contract, which had affected several key projects including the 208.73-kilometre Gilgil-Thika-Malaa-Konza transmission line.

    The board of directors, led by Chairman Captain Mohamed Abdi, announced Kipkemoi Kibias as the acting Managing Director while recruitment for a substantive replacement proceeds.

    Kibias, who previously served as General Manager for System Operation & Power Management, holds specialized qualifications in nuclear power plant engineering.

    Unconfirmed reports suggest that attempts were made to save Mativo’s position through questionable means, with sources indicating that between Sh20 million and Sh50 million could have changed hands to prevent his removal.

    However, these efforts ultimately failed as the board moved decisively to address the procurement scandal.

    The Mativo case underscores the ongoing challenges in Kenya’s state corporation governance, where high-value infrastructure projects carry both strategic national importance and significant opportunities for corruption.

    As investigations continue, the incident serves as a stark reminder of the need for robust oversight mechanisms in the country’s critical energy infrastructure development.

    For KETRACO, the priority now shifts to rebuilding institutional credibility while continuing to deliver on Kenya’s ambitious power transmission agenda.

    The company’s ability to learn from this expensive mistake will determine whether similar procurement scandals can be prevented in the future.

    The Sh400 million loss represents more than just financial waste; it symbolizes the cost of weak institutional governance in a sector critical to Kenya’s economic development aspirations.​​​​​​​​​​​​​​​​

  • KETRACO Refuses To Disclose Details Of Contract Agreement With Adani Group

    KETRACO Refuses To Disclose Details Of Contract Agreement With Adani Group

    Ketraco has declined to publicly disclose the terms of the agreement for contracts that it signed with India’s Adani Group for the construction of three transmission lines and two substations.

    The State-owned company rejected a push by a city law firm, IC Law LLP, to make public details of the financial health of the Adani energy subsidiary, a list of other firms, if any that floated a similar proposal to Ketraco for the project, the findings of recommendations from Kenyans on the deal, and also the legal advice given to Ketraco by the Attorney General’s office on the deal.

    Ketraco awarded Adani Energy Solutions— a subsidiary of the Adani Group— the tender to build the 206-kilometre 400 kilovolts (kV) Gilgil-Thika-Malaa-Konza, 95km 220kV Rongai-Keringet-Chemosit and the 70km 132kV Menengai-Olkalou-Rumuruti lines. The Indian firm will also construct a 400/220kV substation at Lessos and the Rongai 132/33kV Thurdibuoro substation in Kisumu.

    IC Law LLP wrote to Ketraco on September 11 seeking to have the State-owned firm disclose details of the agreement with Adani Energy Solutions, in a push to lift the lid on the deal, which was signed in secret.

    Treasury first revealed that the deal had been signed in an update on the public-private partnership (PPP) projects that Kenya has entered into.

    Deals between the government and the Adani Group have come under increased scrutiny following the controversial attempt to ink a 30-year concession lease for Jomo Kenyatta International Airport. Under the proposed lease, which has since been halted by the High Court, the Adani Group will expand the airport and build new taxiways, among other critical infrastructure.

    “Upon review of your letter, we note that the information requested is currently under consideration and this falls outside the scope of disclosure under Section 4 (1) of the Access to Information Act,” Ketraco Managing Director John Mativo says in the response letter to the law firm.

    “We undertake that after due consideration and finalisation of the process, the requested information may be availed (sic).”

    IC Law LLP wrote to Ketraco weeks after the Treasury’s disclosures on the deal were made public as the law firm sought to compel the government to disclose details of the agreements with Adani.

    “We wish to exercise our right to information held within your organisation, including but not limited to: project agreements, financial capacity of the tendering company, tendering process undertaken and public participation,” the law firm said in its letter to Ketraco.

    The Treasury in July revealed that the deal with Adani Energy Solutions had already been signed and that the two were finalising details of the contract.

    However, last month Ketraco invited Kenyans for public participation sessions on the deals with Adani Energy Solutions, raising eyebrows on the impact of the discussions given that the contracts had already been awarded.

    The deal with Adani Group is one of the PPP projects that Kenya is hinging on to build transmission lines and bridge an infrastructural lag in the power sector, without burdening the exchequer or taking loans.

    Aging infrastructure is a major headache facing Kenya’s electricity sector and has been blamed for numerous national power blackouts, but funding woes by the exchequer have increasingly made it difficult for Kenya to finance a revamp of the grid using its revenues.