The Energy champion KenGen has defended its stock of alleged idle assets which were highlighted in an audit of its books for the year ended June by the Office of the Auditor General (OAG).
In response to the disclosures, KenGen says idle geothermal wells valued at Ksh.79.3 billion are to be incorporated into future power generation projects.
“Energy projects, especially geothermal infrastructure, require significant lead time during which geothermal steam resources must be harnessed and availed to guide plant specifications and conclusion of financing agreements and terms,” the company said on Thursday.
KenGen says it has dug an estimated 319 geothermal wells which have been subsequently assigned to current and future projects.
In her audit of Kengen books, Auditor General Nancy Gathungu noted the vacant geothermal wells offer no value for money even as KenGen services a loan taken from the Export-Import Bank of China (EXIM) for the investment.
The idle geothermal wells were flagged alongside other projects whose value rounds off to Ksh.99.3 billion and which the audit fingers as likely incomplete projects.
The projects include Ksh.4.5 billion deployed in the construction of Soundu and Olkaria transmission lines which are currently used by a third party for revenue generation.
According to the audit report, KenGen did not provide explanations to auditors on why the projects had not been completed and capitalized.