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Treasury Hard-Pressed to Explain Ksh785 Million Rejected by Foreign Bank

  • The National Treasury has been hard pressed to explain how Ksh785 million was wired to a foreign bank based in Germany and later rejected.

    In the deal that has raised eyebrows, the German bank rejected Ksh785 million wired into a Central Bank of Kenya (CBK) account by Lake Turkana Wind Power as refund of excess money from Kenya power.

    Treasury Principal Secretary Julius Muia while appearing before Members of parliament on Wednesday, February 2, he noted that he was not aware of the overpayment by Kenya Power.

    Wind Power turbines installed at Lake Turkana

    Wind Power turbines installed at Lake Turkana.

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    The foreign bank turned down the excess payment of idle power charges in 2018. Justifying their decision, they noted that Kenya did not provide enough evidence and beneficiaries of the millions paid to CBK.

    “I am not aware and would have to check that. I will need more time,”  the PS stated.

    The PS was put under pressure to account for his remarks yet he was reportedly copied three separate letters from the company tasked with undertaking the project.

    “I hand you three letters from LTWP seeking assistance to refund the money. The letters are copied to you,” PIC chairman Abdulswamad Nassir stated.

    “Why has the Treasury allowed somebody to keep Sh785 million? Somebody must be earning interest.” 

    In their defense, officials from the company tasked with undertaking the project revealed that they returned the money in December 2021 following the confusion.

    “LTWP communicated to KPLC (via email) on December 23, 2021, that the payment had been returned and to provide an appropriate contact person at Central Bank of Kenya, or the additional banking information required.

    “We subsequently reached out to both again on January 3, 2022 and January 12, 2022 but with unfortunately no response received yet,” LWTP chief executive Phylip Leferink.

    The mystery of the said money is now being probed by the National Assembly with several other top officials set to be grilled.

    A file iumage of the National Treasury

    The National Treasury offices at Harambee Avenue, Nairobi

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    probe

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