Congolese-based Entreprise Générale Malta Forrest (EGMF) is set to receive a payout from a stalled transmission line project by KETRACO. The High Court has ordered the state-owned entity to pay sh220 million over the stalled Loiyangalani-Suswa wind power project. However, the court rejected the company’s claim for sh500 million compensation in idle time. It also denied its request to be reimbursed for prolongation costs.
The court ruled that the contractor failed to strictly prove the losses despite citing delays, site disruptions and non-payment. The transmission line project was among several initiatives by KETRACO to modernize the country’s transmission network.
The line was central to evacuating wind power from Northern Kenya. However, it faced numerous challenges linked to financing and land acquisition. It was a necessary component to the Lake Turkana wind power, Africa’s largest wind power project. The government has often been at fault with contracted companies over power line projects such as the Suswa-Lamu power line project. The line was to be implemented by India-based Adani however collapsed after the president nullified Adani’s contract in the country.
Scope of Implementation on the KETRACO-EGMF Stalled Transmission Line Project
The KETRACO-EGMF stalled transmission line project is one of the blows that the government endures from stalled projects. The state utility has noted that it has acknowledged the ruling but is reviewing the decisions with its legal team. The firm also noted its commitment to resolving infrastructural disputes amicably while protecting the interests of taxpayers. “Our priority remains the successful implementation of Kenya’s transmission infrastructure projects while ensuring prudent use of public resources,” a spokesperson noted.
Once completed, the line was expected to reduce power losses, improve reliability and support the nation’s energy demands driven by industrialization and urban expansion. The latest award adds to a growing list of multimillion-dollar claims against KETRACO arising from stalled transmission projects.
Of these, most of them linked to the same chronic problem of wayleave acquisition. Energy sector experts say the awards are ultimately paid by Kenyan taxpayers either through increased government subventions to KETRACO or through higher electricity tariffs.
Project Overview
- Project Name: Loiyangalani–Suswa Transmission Line
- Project Type: Power transmission infrastructure
- Value: Not specified (project); court award ~KES 220 million
- Purpose: Evacuate wind power from northern Kenya
- Status: Stalled; subject to legal dispute
Key Stakeholders
- Client: Kenya Electricity Transmission Company
- Contractor: Entreprise Générale Malta Forrest
- Judiciary: High Court of Kenya
- Related Project: Lake Turkana Wind Power Project
Location
- Route: Loiyangalani to Suswa
- Country: Kenya
Scope
- High-voltage transmission line
- Integration of wind power into national grid
- Supports renewable energy distribution
Funding / Delivery Model
- Public infrastructure project
- Also state-led delivery via KETRACO
- Contractor-based execution model
Status
- Project stalled due to multiple challenges
- Court ordered KETRACO to pay KES 220 million
- Additional compensation claims rejected
Key Risks & Challenges
- Land acquisition (wayleave) issues
- Financing and project delays
- Legal disputes and compensation claims
Strategic Significance
- Critical for renewable energy integration
- Supports grid reliability and reduced losses
- Highlights risks in large-scale transmission projects
Financial Impact
- Court-awarded compensation (KES 220M)
- Broader exposure to claims from stalled projects
- Potential cost burden on taxpayers and tariffs
