Sh400 Million Transformer Procurement Scam Leads to John Mativo’s Dramatic Sacking From KETRACO

The dramatic downfall of Kenya Electricity Transmission Company (KETRACO) Managing Director John Mativo has exposed a web of procurement irregularities that cost taxpayers approximately Sh400 million and raised serious questions about oversight in Kenya’s energy sector.

Dr. Mativo, who was unceremoniously sacked on September 19, 2025, nearly a year before completing his three-year term, fell victim to a scandal involving the botched transportation of a critical 70-tonne transformer that was destined to improve power supply across Western Kenya.

The saga began with KETRACO’s procurement of two high-voltage transformers for the strategic 220 kV Turkwel–Ortum–Kitale transmission project.

While one 40-tonne unit was successfully installed at the Ortum sub-station, the larger 220/132 kV, 90 MVA transformer worth Sh400 million met a catastrophic end during transportation from Mombasa port.

Sources familiar with the matter reveal that the massive transformer, earmarked for installation at the Kitale sub-station, was transported without proper contractual arrangements or insurance cover.

The expensive equipment reportedly fell off the transporter’s truck during the journey, rendering it completely destroyed and representing a staggering loss to taxpayers.

The incident triggered a comprehensive investigation that traced the procurement irregularities back to KETRACO’s senior management.

Board meeting sources confirmed that the transportation arrangement lacked the fundamental safeguards required for such high-value, sensitive equipment.

A senior Ministry of Energy official, while confirming disciplinary action, emphasized that state corporations must strictly adhere to procurement protocols.

“Management is expected to tick all the boxes before awarding. The ministry doesn’t micro-manage agencies at all. They procure end to end—from floating the tender, evaluating, awarding—and all that should be followed to the letter,” the official stated.

The investigation revealed a pattern of procedural violations that extended beyond the transportation mishap.

A senior procurement official had already been suspended before Mativo’s turn came as the accounting officer ultimately responsible for the company’s operations.

When contacted about the allegations, Mativo appeared evasive, initially claiming he “didn’t understand the questions” before abruptly ending the conversation.

He maintained that the disputed procurement “had not reached a contract stage,” a claim that investigators found difficult to reconcile with the actual transportation and subsequent destruction of the equipment.

The scandal has broader implications for Kenya’s energy infrastructure development. The destroyed transformer was crucial for improving power quality and reliability across several counties in Western Kenya, and its loss has delayed critical improvements to the national grid.

Mativo’s exit comes at a particularly sensitive time for KETRACO, which has been aggressively pursuing major transmission projects through Public Private Partnerships.

The company was already dealing with the fallout from the cancelled Adani Group contract, which had affected several key projects including the 208.73-kilometre Gilgil-Thika-Malaa-Konza transmission line.

The board of directors, led by Chairman Captain Mohamed Abdi, announced Kipkemoi Kibias as the acting Managing Director while recruitment for a substantive replacement proceeds.

Kibias, who previously served as General Manager for System Operation & Power Management, holds specialized qualifications in nuclear power plant engineering.

Unconfirmed reports suggest that attempts were made to save Mativo’s position through questionable means, with sources indicating that between Sh20 million and Sh50 million could have changed hands to prevent his removal.

However, these efforts ultimately failed as the board moved decisively to address the procurement scandal.

The Mativo case underscores the ongoing challenges in Kenya’s state corporation governance, where high-value infrastructure projects carry both strategic national importance and significant opportunities for corruption.

As investigations continue, the incident serves as a stark reminder of the need for robust oversight mechanisms in the country’s critical energy infrastructure development.

For KETRACO, the priority now shifts to rebuilding institutional credibility while continuing to deliver on Kenya’s ambitious power transmission agenda.

The company’s ability to learn from this expensive mistake will determine whether similar procurement scandals can be prevented in the future.

The Sh400 million loss represents more than just financial waste; it symbolizes the cost of weak institutional governance in a sector critical to Kenya’s economic development aspirations.​​​​​​​​​​​​​​​​