When KETRACO announced it had terminated Dr. John Mativo, its Managing Director and CEO, on 18 September 2025, the energy sector felt the tremor. The board meeting – a KETRACO Board MeetingNairobi – lasted less than an hour, underscoring how decisive the decision was. Allegations of Ksh 6 billion (about US$45 million) in corruption and claims of gross mismanagement swirled, making the termination more than a routine shake‑up.
Background of KETRACO and Mativo's Tenure
Kenya relies on KETRACO to move power from generation sites to the national grid. Established in 2008, the state‑owned transmission company has overseen projects worth billions, from high‑voltage lines to inter‑regional interconnectors. Dr. John Mativo stepped into the top job in April 2023 after a competitive selection process, promising to modernise the network and curb losses.
During his roughly two‑and‑a‑half‑year stint, KETRACO completed the 400‑kV line to Eldoret and launched a pilot for smart‑grid technology in Nairobi. Yet, insiders say progress stalled on several key contracts, and a whistle‑blower report in early 2025 hinted at irregular procurement practices. The financial scandal—centered on a Ksh 6 billion contract for transformer upgrades—quickly grew into a political flashpoint.
The Board Decision and Allegations
The board, chaired by Mohamed Abdi, Chairman of KETRACO, convened on a rainy Thursday afternoon. In a brief statement, Abdi said, "We cannot tolerate any form of corruption that jeopardises the nation’s power supply and public funds." The phrasing left little doubt that the decision was rooted in the alleged Ksh 6 billion fraud, though the exact mechanics of the scheme remain murky.
According to the procurement watchdog, the disputed contract lacked competitive bidding and involved shell companies linked to senior officials. If the figures are accurate, the sum represents roughly 3 % of KETRACO’s annual budget, a staggering slice that could have funded upgrades across the western corridor.
Kipkemoi Kibias Steps In
Just two days after Mativo’s exit, the board appointed Kipkemoi Kibias, previously General Manager for System Operation and Power Management at KETRACO, as acting Managing Director and CEO. Kibias brings more than a decade of experience in Kenya’s electricity arena, having served as Regional Manager and County Manager at Kenya Power before joining KETRACO in 2018.
"Continuity is critical for the grid’s reliability," Kibias told reporters on 20 September. "My focus will be on stabilising operations, completing the pending projects, and cooperating fully with any investigations into past irregularities." His appointment was made in consultation with the Office of the Chief of Staff and the Ministry of Energy, highlighting the strategic weight the government places on KETRACO’s leadership.
Reactions from Government and Industry
The Ministry of Energy issued a terse communiqué, affirming its support for the board’s swift action and pledging “transparent oversight” moving forward. An official from the Office of the Chief of Staff declined to comment on the specifics but said the transition was “in line with national priorities for energy security.”
Industry voices were mixed. Dr. Grace Njeri, senior analyst at African Energy Insights, warned, "Sudden leadership changes can disrupt ongoing transmission projects, especially those nearing critical milestones. Stakeholders will be watching closely to see if Kibias can keep the pipeline moving without further hiccups." Conversely, the Kenya Power Workers Union welcomed the move, noting that Kibias “understands frontline operations and has a reputation for hands‑on management.”
Implications for Kenya's Power Sector
The fallout from the scandal could reshape Kenya’s energy roadmap. Analysts estimate that the alleged Ksh 6 billion loss could delay the Western Power Corridor project by up to 12 months, potentially pushing back the target to connect 1.2 million households.
Moreover, the episode may trigger tighter procurement rules across state‑owned utilities. The Public Investment Management Board (PIMB) has hinted at a review of all contracts above Ksh 500 million, aiming to tighten audit trails and enforce stricter conflict‑of‑interest disclosures.
For ordinary Kenyans, the most tangible impact will be on the reliability of electricity supply. KETRACO’s transmission network carries roughly 70 % of the country’s total generation. Any disruption at the top can ripple down to blackouts in Nairobi’s business districts and power‑starved schools in the Rift Valley.
Key Facts
- Board meeting date: 18 September 2025 (Nairobi)
- Outgoing CEO: Dr. John Mativo, tenure began April 2023
- Alleged corruption amount: Ksh 6 billion (~US$45 million)
- Acting CEO appointed: Kipkemoi Kibias on 20 September 2025
- Key government bodies involved: Office of the Chief of Staff, Ministry of Energy
Frequently Asked Questions
Why was Dr. John Mativo dismissed so abruptly?
The board cited serious allegations of Ksh 6 billion in corruption and evidence of gross mismanagement. Though a full investigation is pending, the magnitude of the alleged fraud compelled the board to act quickly to protect the company’s reputation and safeguard ongoing projects.
What does the appointment of Kipkemoi Kibias mean for KETRACO’s operations?
Kibias brings extensive operational experience from within KETRACO and Kenya Power. His immediate priority is to ensure continuity of critical transmission projects and to cooperate with any audits. Stakeholders hope his hands‑on approach will stabilise the grid while the investigation proceeds.
How will the alleged Ksh 6 billion loss affect Kenya’s energy plans?
If the loss is confirmed, it could delay or scale back major transmission initiatives, such as the Western Power Corridor. The government may need to re‑allocate funds or seek additional financing, which could push project timelines by up to a year.
What role did the Ministry of Energy play in the leadership change?
The Ministry of Energy, together with the Office of the Chief of Staff, consulted with the KETRACO board during the appointment of the acting CEO. Their involvement signals the strategic importance of KETRACO’s stability for national energy policy.
Will there be legal consequences for those involved in the alleged corruption?
Kenyan anti‑corruption agencies have opened a formal probe. If evidence confirms wrongdoing, the implicated parties could face charges ranging from fraud to abuse of office, potentially resulting in fines, imprisonment, and the recovery of misappropriated funds.
1 Comments
Sara Lohmaier October 3, 2025 AT 04:33
I cant even process how this saga keeps unfolding, it's like watching a drama where the villains wear suits. The sheer scale of the alleged fraud makes my blood boil, and I feel we all bear a moral duty to demand true accountability. If KETRACO doesn't cleanse its ranks, the whole nation suffers.