Our attention has been drawn to a story that appeared on the Business Daily on Tuesday 6th February 2018 headlined “Chinese firm lends Kenya Sh25bn to electrify SGR” and wish to clarify as follows:
1. The contract signed between KETRACO and China Electric Power Equipment & Technology Company (C.E.T.) is a Commercial Contract and not a Financing Agreement as implied.
2. The said contract only contains scope and value of works and is not effective until the National Treasury has signed a Financing Agreement with the prospective financiers of the project.
3.KETRACO has not borrowed any loan for the electrification of the SGR Project. The mandate of sourcing any funding via loans, grants or other instruments to fund public projects is only held by the National Treasury in collaboration with Ministry of Energy; in the case of power transmission infrastructure projects.
KETRACO’s mandate is to build, operate and maintain high-voltage power transmission infrastructure to support the Government’s Vision 2030, universal access to electricity and as an enabler towards His Excellency, President Uhuru Kenyatta’s Big Four Pillars of food security, affordable housing, manufacturing and affordable healthcare for all.