At the heart of the controversy is a Sh21 billion smart meter tender that has drawn scrutiny from oversight bodies, lawmakers, and investigators, raising serious concerns about systemic corruption, political influence, and institutional failure.
Kenya Power is once again at the center of a major corruption storm, with fresh revelations pointing to what investigators describe as one of the most elaborate procurement schemes in the country’s recent history.
The Tender and Its Discontents
The origins of the scandal trace back to a tender issued by Kenya Power for the supply of single-phase smart meters intended for approximately two million customers. On the surface, the project aligned with Kenya’s broader agenda of modernising electricity infrastructure. However, the procurement process quickly became mired in controversy.
Initial tender requirements were clear: only genuine local manufacturers with verifiable production capacity and demonstrable Kenyan ownership were eligible. This was designed to support the domestic industry and ensure value for money. But according to a complaint filed by businessman Benedict Kabugi Ndung’u, these criteria were gradually altered through a series of six addenda.
By the final revision, the tender had effectively been opened to include meter assemblers—entities that differ significantly from manufacturers and are explicitly excluded under Section 155 of the Public Procurement and Asset Disposal Act. Ndung’u alleges that these changes were not procedural clarifications but deliberate manipulations intended to favor a predetermined group of beneficiaries.
He subsequently submitted documentation to key investigative agencies, including the Directorate of Criminal Investigations (DCI), the Office of the Director of Public Prosecutions (ODPP), and the Ethics and Anti-Corruption Commission (EACC), describing the affair as a coordinated scheme operating within Kenya Power’s procurement system.
The Four Beneficiaries and Financial Breakdown
The tender was ultimately divided among four companies, each receiving contracts worth billions:
- Smart Meter Technology Ltd – Sh4.66 billion
- Inhemeter Africa Company Ltd – Sh5.46 billion
- Magnate Ventures Ltd – Sh5.44 billion
- Yocean Group Limited – Sh5.48 billion
Together, these awards total approximately Sh21 billion.
Notably, Smart Meter Technology Ltd has been linked to Sam Mburu, husband of Nakuru Governor Susan Kihika.
According to the complaint, the tender document issued to interested bidders upon the advertising of the tender, the conditions of tender and the eligibility criteria were initially only for local manufacturing firms.
“All this was done in a conspiracy meant to make sure that the qualification criteria fits the qualifications of particular bidders. These conspiracy was hatched and executed by a criminal enterprise comprising of corrupt KPLC members of staff led by Dr. John Ngeno, the General Manager, Supply Chain & Logistics in cohorts with his preferred bidders.” The complaint reads.
Inhemeter Africa is associated with William Kabinga Gatheca, while Magnate Ventures is linked to businessman Stanley Ngethe Kinyanjui.
Yocean Group Limited, led by CEO Dylan Yu, is described as a manufacturer, though complaints allege it operates primarily as an assembler or intermediary.
Inflated Costs and Questionable Value
One of the most striking aspects of the scandal is the pricing discrepancy. Kenya Power’s existing supplier had been providing comparable meters at approximately Sh4,000 per unit. Under the contested contracts, however, prices surged to around Sh7,000 per unit—a 75% increase.
When applied across a multi-billion-shilling procurement, this markup translates into hundreds of millions in excess expenditure, raising serious questions about value for money and possible collusion.
A Pattern of Procurement Dysfunction
The smart meter scandal is not an isolated case. A preliminary audit conducted during the EACC’s 2023 investigations revealed that Kenya Power was holding approximately Sh9.8 billion in dead stock, including cables, meters, and transformers purchased at inflated prices and left unused for over five years.
The audit also uncovered evidence of ghost suppliers—entities paid in full for goods never delivered—and artificially created shortages used to justify emergency procurements at inflated prices. During the same period, EACC officers raided the homes of six senior managers as part of investigations into procurement irregularities, insider trading, unexplained wealth, and conflicts of interest.
Magnate Ventures and a History of Controversy
Among the four beneficiaries, Magnate Ventures stands out for its extensive history of contested public procurement. Headquartered in Westlands, the company is led by Stanley Kinyanjui, a businessman widely regarded as politically connected.
Prior investigations by the DCI linked the company to a Sh600 million airport security tender at Jomo Kenyatta International Airport, where it allegedly supplied faulty X-ray scanners. Court records indicate that investigators examined whether political connections influenced the award.
In 2021, Magnate also challenged a Sh6.67 billion contract awarded to Chinese firm Hexing Technology Ltd. The Public Procurement Administrative Review Board (PPARB) ultimately nullified that award, citing irregularities and noting that the public risked losing Sh1.2 billion due to inflated pricing.
The Regulator’s Verdict
The PPARB’s August 2025 ruling partially cancelling the smart meter tender further reinforced concerns about irregularities. The board found that due diligence had been conducted inconsistently and selectively, in violation of procurement laws.
Entities with no prior supply history were not subjected to proper vetting, while evaluation processes for established suppliers deviated from standard frameworks. Additionally, notification letters issued to successful bidders failed to disclose unit pricing per lot, directly contravening procurement regulations.
The Public Procurement Regulatory Authority (PPRA) later informed Parliament that Kenya Power had awarded contracts to firms that had previously failed to meet obligations, including one that had not delivered 91,000 meters under an earlier agreement.
The Role of Dr. John Ng’eno
Central to the investigation is Dr. John Ng’eno, Kenya Power’s General Manager for Supply Chain and Logistics. His career has been marked by previous controversies, including allegations during his tenure at the Kenya Bureau of Standards involving procurement irregularities.
Sources indicate that internal procurement procedures were bypassed in the smart meter tender, with evaluation reports allegedly submitted directly to Ng’eno, skipping key oversight levels. This departure from protocol has been flagged as a major red flag by investigators.
Despite past recommendations by the DCI for charges in earlier cases, Ng’eno has never been prosecuted.
Mounting Evidence and Institutional Pressure
The ongoing EACC investigation is described by insiders as more comprehensive than previous efforts. It builds on a substantial paper trail, including parliamentary proceedings, audit reports, court rulings, and formal complaints.
The timeline of events—from the PPARB’s cancellation, to Kenya Power’s legal challenges, to subsequent court orders enforcing the tender—has created a dense evidentiary record that investigators are now analyzing.
At least 28 individuals are reportedly named in the current dossier under review.
Will There Be Accountability?
Despite the growing body of evidence, skepticism remains about whether the investigation will lead to prosecutions. Kenya’s track record in handling high-level corruption cases has been mixed, with many cases stalling before reaching conviction.
However, the scale of the alleged irregularities, the number of institutions involved, and the increasing public scrutiny may make it more difficult for the matter to fade without consequence.
Conclusion
The Kenya Power smart meter scandal paints a troubling picture of systemic weaknesses in public procurement, where regulatory safeguards can be circumvented and vast sums of public money exposed to abuse. From inflated pricing and ghost suppliers to politically connected beneficiaries, the case underscores the urgent need for reforms.
As investigations continue, the central question remains whether this moment will mark a turning point in accountability—or simply become another chapter in Kenya’s long struggle against corruption.
