KETRACO Annual Report

Building a World Class National Grid

Annual Report & Fi n an ci al stat em en t s

Our Vision “To be a world-class electricity transmission company and the leading inter-connector in Africa” Our Mission “To build and operate a national electricity transmission network that is reliable, efficient, effective, safe and environment-friendly through innovative and best practices; and to promote regional power trade for socio-economic development.”

CUSTOMER FOCUS The Company commits itself to attaining the highest standards in service delivery to all stakeholders.

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INTEGRITY, TRANSPARENCY AND ACCOUNTABILITY The Company is committed to acting in an honest, transparent and responsible manner while implementing its programmes.

TEAMWORK The Company employees will work in unison at all levels and embrace a participatory approach in implementing all programmes and activities.

CREATIVITY AND INNOVATION The Company will be a learning organization that embraces and continuously introduces change in its business processes.

COMMITMENT The Company will embrace self-drive and hard work in attaining the highest standards in service delivery to all stakeholders.

EQUITY The Company will uphold the highest levels of impartiality by treating all stakeholders without any discrimination whatsoever.

PROFESSIONALISM The Company’s operations will be guided by professional ethics aimed at building an appropriate corporate culture and creating the right corporate image.

Annual Report

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Contents 1 Corporate Information

2

Board of Directors

2

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3 Senior Management Staff

10 - 11

4 Notice of Annual General Meeting

12

5 Ilani ya Mkutano Mkuu wa Mwaka

13

6 Chairman’s Statement

14 - 15

7 Muhtasari wa Mwenyekiti

16 - 17

8 Managing Director & CEO’s Overview

18 - 29

Ripoti ya Mkurugenzi Mkuu na pia Afisa Mtendaji Mkuu

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10 Corporate Governance Statement 11

41 - 44

Report of the Directors

45

12 Statement of Directors’ Responsibilities 13

Report of the Independent Auditors

14

Financial Statements

30 - 40

46 47

Statement of Comprehensive Income

48

Statement of Financial Position

49

Statement of Equity

50

Statement of Cashflows

51

Notes to the Financial Statements

52 - 62

Detailed Statement of Comprehensive Income

63 - 64

The Kenya Electricity Transmission Company Limited

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Corporate Information Registered Office & Principal Place of Business

2nd Floor, Capitol Hill Square Chyulu Road, Upper Hill P.O. Box 34942 – 00100 Nairobi – KENYA

Mr. Justus G. Kageenu – Chairman Eng. Joel M. Kiilu - Managing Director & CEO Mr. Patrick M. Nyoike Mr. Joseph K. Kinyua Hon. Jimmy Ang’wenyi Rev. (Dr.) Jessie W. Mutura Mr. Domiciano L. Maingi Hon. Jaafar M. Sheikh Mr. Daniel K. Mwaura Mrs. Felister Kivisi - Alternate to Joseph Kinyua Eng. Julius Mwathani- Alternate to Patrick Nyoike

Directors

2 Secretary

Duncan K. Macharia P.O. Box 34942 – 00100 Nairobi. Kenya

Auditors

Deloitte & Touche (For Auditor-General) Certified Public Accountants (Kenya) Deloitte Place, Waiyaki Way, Muthangari P O Box 40092 - 00100 Nairobi

Advocates

The Company maintains a Panel of Advocates

Annual Report

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CAPITOL HILL SQUARE Registered Office & Principal Place of Business

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The Kenya Electricity Transmission Company Limited

Annual Report

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Board of Directors

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Hon. Jimmy Angw’enyi

Mr. Patrick Nyoike (PS, Ministry of Energy)

Eng. Julius Mwathani (Alt. to Mr. Patrick Nyoike PS, Ministry of Energy

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Mr. Daniel K. Mwaura

Mrs. Felister Kivisi (Alt. to Mr. Joseph Kinyua PS, Treasury)

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Board of Directors

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Mr. Domiciano Maingi

Hon. Jafaar Mohammed

Eng. Joel M. Kiilu (Managing Director & CEO)

Mr. Justus Kageenu (Chairman)

Rev. (Dr) Jessie Mutura

Mr. Duncan Macharia (Company Secretary)

Not in the picture Mr. Joseph Kinyua PS, Treasury

The Kenya Electricity Transmission Company Limited

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Board of Directors’ Profiles

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Mr. Justus G. Kageenu Chairman Born in 1947, Mr. Justus Kageenu holds a Bachelor of Commerce degree from the University of Nairobi and is also a Certified Accountant. Justus has spent most of his working life in the Energy Sector particularly in the Petroleum Sub-sector where he has worked for Exxon, Kenya Petroleum Refineries Limited (KPRL) and Shell.

He joined the Board of KPRL in 1997 and became Chairman in 2003 until February, 2009, when he was appointed the Chairman of the Board of KETRACO.

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Eng Joel M. Kiilu Managing Director & CEO

Mr. Patrick M. Nyoike PS Energy- Director

Born in 1956, Eng. Joel Kiilu is an Electrical Engineer and holds a Masters Degree in Business Administration (MBA) from the University of Nairobi.

He also holds a Bachelor of Science (Bsc.) degree in Electrical Engineering from the same University.

Mr. Patrick M. Nyoike was born on 30th September 1947. He holds a Bachelor of Science degree in Mathematics and Physics from University of Ghana and a degree in Economics from University of Nairobi.

Eng. Kiilu is a member of Institution of Engineers of Kenya (MIEK), a member of the Institution of Electrical and Electronic Engineers (MIEEE). He joined The Kenya Power & Lighting Company Limited as a trainee Engineer in 1977 and rose to the position of Chief Manager, Energy Transmission from which he left to join KETRACO in the year 2009 to date.

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

He is currently the Permanent Secretary, Ministry of Energy. Mr. Nyoike is a Director of all the state corporations within the Ministry of Energy.

Board of Directors’ Profiles

Mr. Joseph Kinyua PS, Treasury- Director

Hon. Jimmy O. Ang’wenyi Director

Rev. (Dr.) Jessie W. Mutura Director

Mr. Kinyua is the Permanent Secretary, Ministry of Finance. He is a career economist having served in various capacities in the Treasury and Central Bank.

Born in 1945, Hon. Jimmy Ang’wenyi holds a Bachelor of Commerce degree from Washington & Lee University and an MBA degree from Duke University, both in USA. Hon. Ang’wenyi served as the Member of Parliament for Kitutu Chache and as an Assistant Minister in the Office of the President. He also served as a member of several Parliamentary Committees, including the Energy Committee.

Born in 1948, Rev. (Dr) Jessie Mutura holds an honorary Doctorate of Humanities and Good Governance from the United Graduate College & Seminary (USA). Jessie started her career in banking before venturing into business in the private sector both local and in the international arena where she also served in various civic bodies.

He has also been involved in several projects with the International Monetary Fund both within Kenya and abroad. He holds MA and BA degrees in Economics (UoN).

Hon. Ang’wenyi has travelled widely and has participated in trade, anticorruption, infrastructure and educational conferences. He is a member of ACCA.

The Kenya Electricity Transmission Company Limited

Rev.(Dr) Jessie has also served in voluntary activities and was appointed President of the Federation of National Associations of Women in Business, Comesa and served Chairperson in Child Welfare Society of Kenya for over 20 years. Rev. Jessie is currently a member of Political Parties Disputes Tribunal.

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Board of Directors’ Profiles

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Mr. Domiciano L. Maingi Director Born in 1949, Mr. Domiciano Maingi holds a Master of Arts in International Studies and Bachelor of Psychology degrees both from the University of Nairobi, and an Executive Management Diploma from the University of Nevada, USA. Mr. Maingi is also an Auditor and Accountant, and has worked in the civil service as an Auditor in charge of several Ministries and served as Chief Internal Auditor of Nairobi City Council and on the Board of Local Government Provident Fund. He is a leading fish farmer and current Chairman of the Aqua Cultural Association of Kenya.

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Hon. Jaafar Mohamed Sheikh Director Hon. Jaafar Mohammed was born in 1953 and has a Diploma in Business Administration and a good accountancy background. He served in the 4th and 5th parliament as a member for Mandera West Constituency in the Republic of Kenya. Hon. Jaafar is a prominent businessman. He is in the transport business and as a farmer, is also engaged in wheat seed propagation.

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Mr. Daniel K. Mwaura Director Born in 1966, Mr. Daniel Karuru Mwaura is an Advocate of the High Court of Kenya in private practice and has practised Law for more than 13 years.

Mr. Mwaura is also a Commissioner for Oaths, Notary Public and holds a Bachelor of Laws degree, Bachelor of Arts (Econ) both from Indore University and a post graduate diploma in Laws from the Kenya School of Law.

Board of Directors’ Profiles

Mrs. Felister S. Kivisi (Alternate Director to Mr. J. Kinyua)

Eng. Julius Mwathani (Alternate Director to Mr. P. Nyoike)

Mr. Duncan K. Macharia Company Secretary/Head of Legal Services

Born in 1967, Felister Saliku Kivisi, serves as Senior Assistant Director in the Ministry of Finance, Debt Management Department. She holds a Bachelor of Arts degree from University of Nairobi (1990) and a Master of Arts degree in International Relations from the University of Leeds (1992).

Eng. Julius Mwathani was born in 1960. He holds a Bachelor of Science degree in Mechanical Engineering and an Executive Master of Business Administration degree.

Mr. Duncan Macharia was born in 1960. He holds a Masters of Business Administration degree from the University of Nairobi and a Bachelor of Commerce (Business Administration Option) degree from the same university.

Felister who serves as Alternate Director to Mr. Joseph Kinyua, PS, Treasury has a wealth of experience having worked in the Ministry of Finance from 1994 to date.

Eng. Mwathani is registered by Engineers Registration Board of Kenya and a member of the Institution of Engineers of Kenya. He has wide experience in public sector management, having worked for more than 20 years in various senior positions in Government.

The Kenya Electricity Transmission Company Limited

Duncan is a Certified Public Secretary of Kenya (CPS)K and previously worked as Deputy Company Secretary in The Kenya Power & Lighting Company Limited before he left after serving the company for over 18 years to join KETRACO. He is also a member of the Institute of Directors, (IOD) Kenya.

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Management Team

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Eng. Joel Kiilu Managing Director & CEO Born in 1956, Eng. Joel Kiilu is an Electrical Engineer and holds a Masters Degree in Business Administration (MBA) from the University of Nairobi.

He also holds a Bachelor of Science (Bsc.) degree in Electrical Engineering from the same University.

Eng. Kiilu is a member of Institution of Engineers of Kenya (MIEK), a member of the Institution of Electrical and Electronic Engineers (MIEEE). He joined The Kenya Power & Lighting Company Limited as a trainee Engineer in 1977 and rose to the position of Chief Manager, Energy Transmission from which he left to join KETRACO in the year 2009 to date.

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Mr. Duncan K. Macharia Company Secretary/ Head of Legal Services

Mr. Joe O. Ager General ManagerInternational Business

Ms. Agnes Ongadi Head of Admin, HR & Corporate Affairs

Mr. Duncan Macharia was born in 1960. He holds a Masters of Business Administration degree from the University of Nairobi and a Bachelor of Commerce (Business Administration Option) degree from the same university.

Born in 1949, Joe Ager holds a Master of Business Administration degree (MBA) and a Bachelor of Science (BSc) in Marketing from the University of South Africa.

Born in 1970 Agnes holds a Bachelor of Commerce degree from the University of Nairobi, an Executive MBA from Moi University and a Post-Graduate Diploma in Human Resource Management from Kenya Institute of Management.

Duncan is a Certified Public Secretary of Kenya (CPS) K and previously worked as Deputy Company Secretary in The Kenya Power & Lighting Company Limited before he left after serving the company for over 18 years to join KETRACO. He is also a member of the Institute of Directors, (IOD) Kenya.

Prior to joining KETRACO Ager worked as a Customer Relations and Marketing Manager with Kenya Power & Lighting Company Limited. He also worked as Managing Consultant with Sparrow and Barlow Associates, Head of Operations with British Telecoms– UK, Head of Strategy and Business Development with Caudwell Group Ltd. and Head of Group Sales with British Airways Plc (UK).

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Agnes is a full member of both the Kenya Institute of Management (AMKIM) and Institute of Human Resource Management. Prior to joining KETRACO she worked with the First American Bank and Kenol/ Kobil Petroleum Company

Dr. (Eng.) John Mativo Head of Technical Services Born in 1968, John Mativo is a Civil Engineer and holds a Doctorate degree from Tokyo Metropolitan University (Japan), a Master’s degree from Tongji University (China) and a Bachelor’s degree from the University of Nairobi.

John is a Registered Engineer (Kenya Engineers Registration Board) and a Corporate Member of the Institution of Engineers of Kenya. Before joining KETRACO as Head of Technical Services, he previously worked as a Consultant for European Union funded projects in the Local Government and as an Engineer in the Ministry of Roads and Public Works.

Mr. Fernandes O. Barasa Head of Finance

Mrs. Mumbua Giati Head of ICT

Born in 1973, Mr. Barasa holds a Bachelor of Commerce (Accounting) and MBAFinance Degrees from Kenyatta University. He is also a Certified Public Accountant of Kenya (CPA-K).

Born in 1960, Mrs Mumbua Giati holds a Bachelor of Commerce degree (Management Science option) from the University of Nairobi.

Prior to joining KETRACO, Mr. Barasa worked as Treasury Manager and later Head of Factories Accounts at Kenya Tea Development Agency Limited.

He also worked for Kenya Airways and East Africa Re in senior management positions.

He has wealth of experience in Accounting and Financial Management and serves on various committees of ICPAK.

Mumbua has a wealth of training and experience in IT, having worked for the Kenya Power & Lighting Company Ltd. for 30 years and seen the company’s ICT transition from proprietary legacy systems to modern ERP solutions. She previously held the position of Chief Systems Analyst, SAP at Kenya Power before joining KETRACO as Head of ICT in December 2009.

She is a member of the Computer Society of Kenya.

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Notice of Annual General Meeting NOTICE IS HEREBY GIVEN THAT THE 2ND ANNUAL GENERAL MEETING of the Kenya Electricity Transmission Company Limited will be held at Capitol Hill Square, 2nd Floor, Upper Hill, Chyulu Road, Nairobi, on 27th April 2012 at 11:00 a.m. to transact the following business:1. To read the Notice convening the Meeting.

2.

To receive, consider and adopt the Company’s audited financial statements for the Twelve months ended on 30th June 2011, together with the Chairman’s, Directors’ and Auditors’ Reports thereon.

3. To note that Directors do not recommend payment of a dividend for the period under review.

4. Election of Directors: To note that there will be no election or rotation of directors.

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Whereas the Company was incorporated under the Companies Act, Cap 486, as a private company limited by shares, it is wholly owned by the Government. The Company is, therefore, governed under the provisions of the State Corporations Act, Cap 446 by virtue of Section 2 (c) of the Act. Further, Article 2 of its Memorandum and Articles of Association provide that “The appointment and removal of Directors shall be governed by the provisions of the State Corporations Act, Cap 446, of the Laws of Kenya as amended from time to time. Each Director shall hold office until he is removed or replaced as provided above.” KETRACO has complied with Cap 446 Section which provides for the composition and appointment of Directors. Under the circumstances, there will be no election of Directors.

5. To note that the audit of the Company’s books of accounts will be undertaken on behalf of the Auditor General by the M/s

Deloitte & Touche, an audit firm appointed in accordance with Section 14(3) of the State Corporations Act, and Section 39(1)(b)

of the Public Audit Act, 2003.

M/s Deloitte & Touche carried out the audit for the period ended 30th June, 2011

6. To authorise the Directors to fix the Auditors’ remuneration.

By Order of the Board

Duncan Macharia Company Secretary 16th March, 2012

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& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Ilani ya Mkutano Mkuu wa Mwaka ILANI INATOLEWA KWAMBA MKUTAMO MKUU WA PILI WA KILA MWAKA wa Kenya Elecricity Transmission Company Limited utafanyika katika jumba la Capitol Hill Square, Orofa ya Pili, Upper Hill, Chyulu Road, Nairobi, Tarehe 27th Apri 2012 saa tano asubuhi kushughuli ajenda zifuatazo: 1.

Kusoma ilani ya kuitisha mkutano.

2. Kupokea, kujadili na kuidhinisha taarifa ya fedha zilizokaguliwa kwa muda wa miezi kumi na miwili kufikia tarehe 30 Juni 2011,

pamoja na Ripoti ya Wakurugenzi, Mwenyekiti, na Mkaguzi wa hesabu.

3.

Kufahamu kwamba Wakurugenzi hawapendekezi malipo ya gawio kwa kipindi cha mwaka unaongaziwa.

4. Uchaguzi wa Wakurugenzi: Kufahamu kwamba hakutakuwa na uchaguzi au mzunguko wa wakurugenzi.

Ilhali Kampuni ilianzishwa chini ya Sheria ya Makampuni, Sura ya 486 kama kampuni binafsi mdogo kwa hisa, inamilikiwa na Serikali.

Kwa hivyo, Kampuni hii inaongozwa na masharti ya Serikali ya Sheria ya Makampuni, Sura ya 446 kwa mujibu wa kifungu cha 2 (c) cha Sheria hiyo. Zaidi ya hayo, Ibara ya 2 ya Mkataba wake wa Sheria ya Chama huelekeza kuwa “Uteuzi na kuondolewa kwa Wakurugenzi utaongozwa na masharti ya Sheria ya Makampuni, Sura ya 446 ya Sheria za Kenya, kama ilivyorekebishwa mara kwa mara. Kila kurugenzi atakuwa afisini hadi kuondolewa au kubadilishwa kwa mujibu wa sheria ilivyoeleza hapo juu.� KETRACO inazingatia Sura ya 446 Sehemu ya 6 ya Sheria ya Kampuni za Kenya ambayo inaratibisha muundo na uteuzi wa Wakurugenzi. Katika hali hii, hakutakuwa na uchaguzi wa Wakurugenzi.

5. Kufahamu kwamba ukaguzi wa vitabu akaunti ya Kampuni utafanyika kwa niaba ya Mkaguzi Mkuu wa Hesabu, na Kampuni ya

ukaguzi M/s Deloitte & Touche, Kampuni ya ukaguzi iliyoteuliwa kulingana na kifungu 14 (3) cha Sheria ya Mashirika ya Serikali, na

sehemu ya 39 (1) (b) ya Sheria ya Ukaguzi wa Hesabu za Umma ya mwaka 2003.

M / s Deloitte & Touche ilifanya ukaguzi wa taarifa ya fedha kwa kipindi kulichomalizika mnamo tarehe 30 Juni, 2011 6.

Kuwaidhinisha Wakurugenzi kuamua malipo ya Wakaguzi.

Kwa Amri ya Halmashauri

Duncan Macharia Katibu wa Kampuni 16th March, 2012

The Kenya Electricity Transmission Company Limited

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Chairman’s Statement “Electricity remains the most sought after energy source by the Kenyan society and access to it is normally associated with rising or high quality of life. Its current consumption is at 143 kilowatt hours (kWh) per capita and national connectivity rate of about 28.9% which is below the average of 32% for developing countries.” weather and continued investment in infrastructure will enhance growth of the economy.

Review of the Electricity Sub-Sector The level and the intensity of energy use in the country is a key indicator of economic growth and development. Kenya’s Vision 2030 has identified Energy as one of the infrastructural enablers of its pillars and it is expected that more energy will be required in the country in order to realise the objectives of the Vision.

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Mr. Justus G. Kageenu Chairman

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Review of the Economy have the pleasure to present the second annual report and audited financial statements of the Kenya Electricity Transmission company Limited for the twelve months period ended 30th June 2011.

The Macro-economic environment improved significantly in 2010 compared to 2009. The Gross domestic product grew by 5.6% as compared to 2.6% in 2009. This was attributed to accelerated expansion in the various subsectors of the economy.

The economy was projected to grow by 5.3% in 2011. Overall inflation increased from 4.5% in December, 2010 to 14.49% in June 2011. This together with the foreign exchange fluctuations will most likely adversely impact the growth of the economy.

The outlook for 2011/2012 shows a combination of trends that could contribute to positive prospects in the short and medium term. The implementation of the Constitution in 2010, favourable

Annual Report

Electricity remains the most sought after energy source by the Kenyan society and its access is normally associated with high quality of life. Currently, electricity contributes 9% of total energy needs, biomass 68% and petroleum 22%. The current electricity consumption is 148 kilowatt hours (KWh) per capita and national connectivity is 29% both of which are below the average per capita consumption of 1,169 KWh and connectivity of 32% for developing countries.

Mr. Justus Kageenu (2nd right), Chairman of the Board of Directors of KETRACO hands over a dividend cheque to Mr. Joseph Kinyua, PS Treasury, as Esther Koimett, Investment Secretary, Treasury and Eng. Joel Kiilu, MD & CEO, KETRACO look on.

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Chairman’s Statement

Some of the development partners who funded the Mombasa-Nairobi 400kV transmission line Project accompanied by KETRACO Staff on a site visit

In view of this, KETRACO continues to construct transmission lines and associated substations in order to expand the national grid with a view to increasing the level of access and connectivity countrywide. In order to increase the intensity of electricity, the cost of electricity must be affordable to the consumers. Towards this end the Government on behalf of KETRACO has continued to seek and obtain concessional funding from Development Partners to expand the grid. In addition, the Company is working with regional power utilities to fast track interconnectivity in order to access cheaper power through power trade.

Future Outlook The Company has embarked on an ambitious programme to expand electricity transmission network infrastructure. With more transmission lines being completed and commissioned, it is expected that the level of wheeled units will substantially increase, impacting positively on our turnover. With the continued support of the Government and our development partners, the planned transmission infrastructure projects will be implemented fully and this will go a long way in supporting the realisation of Kenya Vision 2030.

Review of Performance Units of electricity transmitted, through the transmission lines owned by KETRACO, in the financial year 2010/2011 were 364,000,000 Kwh. This was an increase from the 340,460,000 Kwh transmitted the previous year. The total income amounted to KShs.940 million compared to KShs.647 million in 2009/2010, while the total operating expenses for the period was KShs.461 million compared to Kshs.223 million for the previous year.

Surplus for the year before tax was KShs.480 million while net surplus was KShs.422 million. This compares to a surplus before tax of Kshs.424 million and net surplus of Kshs.389 million the previous period.

Tribute I once again express my sincere gratitude and appreciation to the Board of Directors, Management, staff, the Government, particularly the Ministry of Energy and Ministry of Finance, and our development and business partners for their continued support which enabled KETRACO to achieve major milestones during the period under review.

The asset base grew from Kshs.8,761 million in 2010 to Kshs.18,986 million, an increase of 117% which is commendable.

I look forward to your continued support.

MR. JUSTUS G. KAGEENU CHAIRMAN 8th January, 2012

The Kenya Electricity Transmission Company Limited

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Muhtasari wa Mwenyekiti “Umeme bado unabakia kuwa chanzo cha nishati ambayo inatafutwa na Wakenya wengi na upatikanaji wake unahusiana na maisha bora.

Hivi sasa, umeme unachangia 9% ya mahitaji ya jumla ya nishati, inayotokana na mimea 68% na ya mafuta ya petroli 22%. Matumizi ya umeme kwa sasa ni masaa ya Kilowati 148 (kWh) kwa kila mtu na uunganishwaji wa kitaifa ni 29%, yote mawili yakiwa ni chini ya wastani wa matumizi ya 1,169 kWh na uunganishaji ukiwa 32% kwa nchi zinazoendelea.�

Mtazamo wa mwaka wa 2011/2012 unaonyesha mchanganyiko wa mienendo ambayo inaweza kuchangia matarajio chanya katika muda mfupi na wa kati. Utekelezaji wa Katiba ya mwaka wa 2010, hali nzuri ya hewa na uwekezaji katika miundombinu yataendelea kuimarisha ukuaji wa uchumi.

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Mr. Justus G. Kageenu mwenyekti

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Tathmini ya Uchumi ina furaha kuwasilisha ripoti ya pili ya kila mwaka na taarifa za fedha zilizokaguliwa za Kampuni ya Kenya Electricity Transmission Limited, kwa kipindi cha miezi kumi na miwili kilichomalizika tarehe 30 Juni 2011.

Mazingira ya kiuchumi kwa upana yaliboreka kwa kiasi kikubwa katika mwaka wa 2010 ikilinganishwa na mwaka wa 2009. Pato la Taifa lilikua kwa 5.6% likinganishwa na 2.6% katika mwaka wa 2009. Huu ukuaji ulitokana na kupanuka kwa kasi katika sekta ndogo mbalimbali za uchumi. Uchumi ulikuwa umekadiriwa kukua kwa 5.3% katika mwaka wa 2011. Mfumuko wa bei kwa ujumla uliongezeka kutoka 4.5% mwezi Desemba 2010 hadi kufikia 14.49% mwezi Juni 2011. Haya pamoja na kushuka kwa thamani ya fedha za kigeni una uwezekano mkubwa wa kuathiri matokeo ya ukuaji wa uchumi.

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Tathmini ya Sekta ndogo ya Nguvu ya Umeme Kiwango na ukubwa wa matumizi ya nishati katika nchi ni kiashiria muhimu cha ukuaji wa uchumi na maendeleo. Dira ya Kenya 2030 imebainisha Nishati kama moja ya viwezeshaji vya miundombinu za nguzo zake, na inategemewa kwamba nishati zaidi itatakiwa nchini ili kufikia malengo ya Dira 2030.

Umeme bado unabakia kuwa chanzo cha nishati ambayo inatafutwa na Wakenya wengi na upatikanaji wake unahusiana na

Wanachama wa Bodi na wafanyikazi waandamizi wakikagua ramani ya mradi wa Rabai-Lamu wakati wa ziara ya siku za nyuma.

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Muhtasari wa Mwenyekiti maisha bora. Hivi sasa, umeme unachangia 9% ya mahitaji ya jumla ya nishati, inayotokana na mimea 68% na ya mafuta ya petroli 22%.

Matumizi ya umeme kwa sasa ni masaa ya Kilowati 148 (kWh) kwa kila mtu na uunganishwaji wa kitaifa ni 29%, yote mawili yakiwa ni chini ya wastani wa matumizi ya 1,169 kWh na uunganishaji ukiwa 32% kwa nchi zinazoendelea.

Kwa mtazamo huu, KETRACO inaendelea kujenga laini za usambazaji wa umeme na vituo husika, ili kupanua gridi ya taifa kwa lengo la kuongeza kiwango cha upatikanaji na uunganishaji kwa umeme nchini kote. Ili kuongeza kiwango cha matumizi ya umeme, gharama ya umeme lazima iwe nafuu kwa wateja. Kuafikia lengo hili, Serikali kwa niaba ya KETRACO imeendelea kutafuta na kupata fedha zilizo na masharti nafuu kutoka kwa Washirika wetu wa Maendeleo ili kupanua gridi ya taifa. Aidha, Kampuni inafanya kazi na huduma za kikanda za matumizi ya nguvu ya umeme ili kuharakisha uunganishaaji, kusudi kupata nguvu ya umeme iliyo nafuu kwa njia ya biashara ya nguvu ya umeme.

Tathmini ya Utendaji Vitengo vya umeme uliosambazwa kupitia kwa njia ya laini zinazomilikiwa na KETRACO katika mwaka wa fedha wa 2010/2011 vilikuwa masaa ya kilowati 364,000,000 (kWh). Hii ilikuwa ni ongezeko kutoka kWh 340,460,000 za usambazaji mwaka uliotangulia. Jumla ya mapato yalifikia KShs. 940 milioni ikilinganishwa na KShs. 647 milioni mwaka wa 2009/2010, wakati jumla ya gharama ya utendaji kazi kwa kipindi hicho ilikuwa ni KShs. 461 milioni, ikilinganishwa na Kshs. 223 milioni kwa mwaka uliotangulia. Mapato ya ziada kwa ajili ya mwaka kabla ya kodi yalikuwa KShs.480 milioni ilhali mapato halisi ya ziada yalikuwa KShs. 422 milioni. Hii inalinganishwa na mapato ya ziada kabla ya kodi ya Kshs. 424 milioni na mapato halisi ya ziada Kshs. 389 milioni kwa kipindi kilichotangulia.

17 Mojawapo ya minara ya kimo cha mita 35 ya laini ya 400kV ya mradi unaoendelea wa Mombasa-Nairobi, karibu na eneo la Voi.

Maendeleo, miradi ya miundombinu ya usambazaji iliyopangwa itatekelezwa kikamilifu na hii itasaidia sana katika utekelezaji wa Dira ya Kenya 2030.

Shukrani Mimi, kwa mara nyingine tena, ningependa kutoa shukrani zangu za dhati kwa Bodi ya Wakurugenzi, Usimamizi, wafanyakazi, Serikali, na hasa Wizara ya Nishati na Wizara ya Fedha, na washirika wetu wa maendeleo na wa biashara, kwa kuendelea ushirikiano wao na sisi, ambao umewezeshwa KETRACO kufikia hatua kubwa katika kipindi hiki.

Mali yalilikua kutoka Kshs. 8,761,000,000 mwaka wa 2010 hadi Kshs. 18,986,000,000, ongezeko la 117% ambalo ni la kupongezwa.

Ninatarajia kuendelea kupokea ushirikiano wenu.

Mtazamio wa Baadaye Kampuni imeanzisha mpango kabambe wa kupanua miundombinu ya mtandao wa usambazaji wa umeme. Kukiwa na laini zaidi za usambazaji wa umeme zikikamilishwa na kufunguliwa, inatarajiwa kwamba kiwango cha vitengo vya umeme vitakavyo sambazwa kitazidi kuongezeka maradufu, na kuimarisha mauzo yetu. Pamoja na kuendelea kuungwa mkono na Serikali na Washirika wetu wa

MR. JUSTUS G. KAGEENU mwenyekiti 8th January, 2012

The Kenya Electricity Transmission Company Limited

Annual Report

& Financial statements

Report of the Managing Director & Ceo “Other programs that were initiated during the year included increasing human resource capacity and improving the work environment, installation of a backbone ICT infrastructure, review of existing legal and regulatory frameworks, management of corporate risk, review of corporate governance framework and introduction of service delivery mechanisms.”

ELECTRICITY TRANSMISSION FRASTRUCTURE PROJECTS The electricity sector in Kenya has for a long time been beset with challenges of inadequate generation capacity, constrained supply, limited transmission and distribution capacity leading to high losses in the transmission and distribution network. In pursuit of its mandate which is to plan, design, construct, operate and maintain new high voltage (132kV and above) electricity transmission infrastructure, the Company is developing a new and robust national grid system to redress this situation. In this regard, a number of projects are planned for implementation in the short and medium term which fall under the following categories:-

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Eng Joel M. Kiilu – Managing Director & CEO

I

OVERVIEW t is yet another joyous occasion for me to present an overview of the operating performance of KETRACO for the period ended 30th June, 2011.

The Company embarked on an ambitious program to expand electricity transmission network infrastructure through continued implementation of projects which were commenced in the previous year and other new projects initiated in the period under review.

Other programs that were initiated during the year included increasing human resource capacity and improving the work environment, installation of a backbone ICT infrastructure, review of existing legal and regulatory frameworks, management of corporate risk, review of corporate governance framework and introduction of service delivery mechanisms.

Annual Report

i)

ii)

iii)

iv)

Projects that will increase access and address the challenge of low penetration and low connectivity System strengthening and capacity enhancement projects that address the challenge of low voltages, high transmission losses, unreliability of supply and network security Projects that will help evacuate power from generation sites to demand centres Regional power interconnection projects with neighbouring countries that aim to stabilize power supply by enabling power trade.

I. Electricity Access Projects In order to increase access and address the challenge of low penetration and low connectivity, various projects are planned for implementation under the Energy Access Scale-Up Program. The projects under this program are as follows: (a) Kenya Electricity Expansion Project - World Bank funded This is an electricity expansion program that covers

generation, transmission and distribution. The 132kV

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Report of the Managing Director & Ceo

transmission lines and their associated sub-stations that fall under the transmission component are;(i) 250 km Kindaruma- Mwingi- Garissa (ii) 60 km Eldoret- Kitale (iii) 44 km Kisii- Awendo

(b) Power Transmission System Improvement Project - AfDB funded

The power transmission system improvement project

involves construction of 132kV lines and associated

substations. Transmission lines funded under this project are: (i) 79 km Nanyuki- Nyahururu

(ii) 65 km Lessos- Kabarnet

(iii) 68 km Olkaria- Narok

(iv) 33 km Sotik-Bomet

(v) 153 km Mwingi- Kitui- Wote- Sultan Hamud

(vi) 33 km Ishiara- Kieni (c) Transmission System Improvement projects - Belgium Government funded

132kV Transmission lines that fall under this program are:

(i) 67 km Kilimambogo- Thika- Githambo (17 km double

circuit and 50 km single circuit)

(ii) 20 km Thika- Nyaga (Kiganjo)

(iii) 96 km Nanyuki-Isiolo- Meru (d) Transmission System Project - Government of Kenya funded The Government is directly funding the 34 km Mumias-

Rangala 132 kV transmission line.

II. System Strengthening Projects The System Strengthening Projects are meant to strengthen transfer capacity of the national grid. These include:(i) 320 km Rabai- Malindi-Garsen-Lamu 220 kV single circuit line which is envisaged to connect Lamu Port to the National Grid and strengthen supply to North Coast. This has been financed by EXIM Bank of China and Government of Kenya(GoK). (ii) 475 km Mombasa-Nairobi 400 kV double circuit line that will increase power transfer capacity between the Coast and Nairobi. It’s financed by African Development Bank (AfDB), Agence Française de Développement (AFD), European

Minister for Energy, Hon. Kiraitu Murungi receives KETRACO’s contribution towards the 2nd National Energy Conference from MD & CEO , Eng. Joel Kiilu

Investment Bank (EIB) and GoK. (iii) 100 km Nairobi Ring 400 kV project that will increase power transfer capacity and increase reliability which will be financed

by AFD, EIB and GoK. (iv) 300 km Olkaria-Lessos-Kisumu 220 kV double circuit transmission line to be financed by Japan International Cooperation Agency (JICA) that will evacuate supply from Olkaria Geothermal Power Plant and strengthen the link between regions East and West of the Rift Valley.

III. Power Evacuation Projects These transmission lines will evacuate power from generation stations and transfer to load centres:(i) (ii)

(iii)

430 km Loiyangalani- Suswa 400kV double circuit line 25 km Olkaria-Suswa 220 kV two double circuit lines implemented through KENGEN. 5 km Sondu-Sangoro 132 kV double circuit line implemented through KENGEN.

IV. Regional Interconnection Projects Three Regional Interconnectors namely; Kenya-Ethiopia (Eastern Africa Interconnector); Lessos-Tororo and Isinya-Arusha-Singida (Kenya- Tanzania- Zambia) have been planned as detailed below. (i) 612 km Ethiopia- Suswa (Kenya – Ethiopia Interconnector) 500 kV HVDC line that will be financed by World Bank, AfDB, AFD and GoK. This project will allow for import of power initially of 400MW with a capacity to increase to 2,000MW into Kenya from Ethiopia. The line will also be used to supply other neighbouring countries.

The Kenya Electricity Transmission Company Limited

Annual Report

& Financial statements

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Report of the Managing Director & Ceo (ii) 100 km Isinya- Arusha– Singida (Kenya- Tanzania- Zambia interconnector) 400 kV double circuit line that will provide a link to the East African Power Pool with the South African Power Pool (iii) 127 km Lessos - Tororo (Kenya- Uganda interconnector) 220 kV double circuit line being financed by AfDB that will serve as an anchor to interconnection within the Great Lakes region. This will facilitate regional power trade among the countries in the Great Lakes region.

The interconnectors once complete will create a regional market for power trade thus stabilizing quality and supply of power in the region.

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PROJECTS IMPLEMENTATION At the beginning of the financial year, construction works for five lines was ongoing. These are:-Kilimambogo-Thika-Githambo, Mumias-Rangala, Rabai-Malindi-Garsen-Lamu, Mombasa-Nairobi and Thika-Nyaga. At the close of the year, all the projects were at different stages of implementation.

In addition, the Company commenced the process of implementing other projects namely; Loiyangalani-Suswa; Suswa-Isinya; OlkariaLessos-Kisumu; Kindaruma-Mwingi-Garissa; Eldoret-Kitale; KisiiAwendo; Meru-Isiolo-Nanyuki; Ishiara-Kieni-Embu and Nairobi Ring. Other projects that commenced during the period were; Nanyuki- Nyahururu; Lessos- Kabarnet; Olkaria- Narok; BometSotik; and Mwingi- Kitui- Wote- Sultan Hamud. A detailed report on implementation of each of the projects is given here below.

67 km Kilimambogo- Thika- Githambo 132kV line The line is 17 km double circuit 132kV from Kilimambogo to Thika and 50 km single circuit transmission line from Thika-Githambo with two 23 MVA 132/33kV substations at Thika and Githambo.

In the year under review, 62 km of way-leaves were acquired, foundations casting for 89 towers completed, 55 towers erected and 20 km of conductor strung. The project is expected to be completed by March, 2012.

20 km Thika- Nyaga 132Kv line This 132kV single circuit line is a 20 km extension of KilimambogoThika-Githambo with a 23 MVA 132/33kV at Kiganjo. 12 km of way-leaves have been acquired and 7 towers cast during the year.

The project is expected to be completed by March, 2012.

Annual Report

34 km Mumias- Rangala 132kV line The project entails construction of a 132 kV single circuit line with two 23 MVA, 132/33kV substation at Mumias and Rangala with six (6) 33kV feeder bays. Way-leaves acquisition has been completed for 29 km, engineering designs finalized and tower spotting completed during the period under review. The project is expected to be completed by March, 2012.

475 km Mombasa- Nairobi 400/220kV line The Mombasa- Nairobi project involves construction of 400kV double circuit line from Mombasa to Nairobi with substation extension works at Rabai and Embakasi. During the year, route survey was completed, way-leaves acquired for 455 km, designs finalized and tower spotting completed. The project is expected to be completed by March, 2013 and is on schedule 320 km Rabai- Malindi- Garsen- Lamu 220kV line The project entails construction of a 220kV single circuit line from Rabai through Malindi, Garsen to Lamu with three 23 MVA substations at Malindi, Garsen, and Lamu. During the year, ESIA report was completed and submitted to NEMA, route survey progressed, 155 km of way-leaves and land for Garsen substation was acquired and a consulting engineer engaged. The project is expected to be completed in December , 2012.

430 km Loiyangalani- Suswa 400kV line This project involves construction of a 400kV double circuit transmission line from Loiyangalani to Suswa with 400kV substation at Loiyangalani and 400/220kV substation at Suswa. The line will evacuate 300MW of power from Lake Turkana Wind Power plant to Suswa substation. Route survey has been completed, wayleaves acquired for 120 km and an EPC contract initialled. The construction of the line is scheduled to commence in April, 2012 and is expected to be completed 23 months later in March 2014.

Nairobi Ring and Substations The scope of the project entails construction of 100 km IsinyaSuswa 400kV double circuit transmission line and six 220/66kV substations. The substations will be constructed at Ngong, Athi River, Suswa, Isinya, Koma Rock and Thika Road. A draft feasibility study was competed during the year under review. A consulting engineer has been engaged, draft ESIA and RAP reports completed

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Chemosit - kisii 132 kv Transmission line

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Report of the Managing Director & Ceo and bid documents for the main contract completed. The project is expected to be completed by December 2013.

250 km Kindaruma - Mwingi- Garissa 132kV line The project will involve construction of a 132kV single circuit line from Kindaruma to Garissa via Mwingi with a 7.5MVA, 132/33kV substation at Mwingi and a 7.5MVA, 132/33kV and 7.5MVA, 132/11kV substation at Garissa. 69 km of line route has been surveyed, way-leaves consents for 52 km signed. Acquisition of the substation land is on-going. The project is expected to be completed by December, 2013.

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60 km Eldoret- Kitale 132kV line The Eldoret to Kitale 132kV single circuit transmission line will have a 23 MVA, 132/33kV substation at Kitale. 40 km of line route survey has been completed, bid documents finalized and procurement of contractor is at an advanced stage. The project is expected to be completed by December, 2013.

44 km Kisii- Awendo 132kV line The project will involve construction of a 132kV single circuit transmission line from Kisii to Awendo and a 23 MVA, 132/33kV substation at Awendo. Route survey has been completed and tendering for main contractor was initiated during the year. The project is expected to be completed by December 2013.

300 km Olkaria- Lessos- Kisumu 220 kV line The project will entail construction of a 220kV double circuit line from Olkaria through Lessos to Kisumu.. Route survey has been completed and an engineering consultant procured. The project is expected to be completed by December 2014.

65 km Lessos- Kabarnet 132kV line The project will involve construction of a 132kV single circuit transmission line from Lessos to Kabarnet and a 15MVA, 132/33kV substation at Kabarnet. Route survey was completed for the entire line route during the period under review. The project is expected to be completed by June 2014.

96 km Nanyuki- Nyahururu 132kV line This project involves construction of a 132kV single circuit transmission line from Nanyuki to Nyahururu and a 23MVA, 132/33kV substation at Nyahururu. Route survey was completed.

The project is expected to be completed by June 2014.

Annual Report

68 km Olkaria- Narok 132kV line The Olkaria to Narok line entails construction of a 132kVsingle circuit transmission line and a 23MVA 132/33kV at Narok. Route survey was completed and ESIA for Narok substation forwarded to NEMA for issuance of the licence. The project is expected to be completed by June 2014.

33 km Sotik- Bomet 132kV line The Bomet to Sotik line will entail constructing a 132 single circuit transmission line and a 23MVA 132/33kV at Bomet. Route survey for the line and ESIA/RAP for the substation was completed during the year under review. The project is expected to be completed

by June 2014.

153 km Mwingi- Kitui- Wote - Sultan Hamud 132kV line This project involves constructing a 132kV single circuit transmission line from Mwingi through Kitui, Wote to Sultan Hamud with four 15MVA, 132/33kV substations at Kitui, Wote, and Sultan Hamud. During the period under review, 35 km of route survey was completed. The project is expected to be completed by June 2014.

33 km Ishiara- Kieni 132kV line Construction of a 132kV single circuit transmission line from Ishiara to Kieni and a 23MVA, 132/33kV substation at Kieni are the main components under this project. Route survey was completed during the period under review. The project is expected to be completed by June 2014.

96 km Nanyuki- Isiolo-Meru-132kV line The project involves construction of a 132kV single circuit transmission line from Nanyuki through Isiolo to Meru and construction of a 23MVA, 132/33kV substation at Isiolo and installation of an additional 23MVA, 132/33kV transformer at Meru. Route survey on 59km has been completed and an EPC contractor selected for the main contract. The project is expected to be completed by April 2014.

127 km Lessos- Tororo Interconnector 220kV line The project connects Kenya to other countries in the Great Lakes region through Uganda transmission network and will involve construction of 127 km, 220kV double circuit transmission line from Lessos to Tororo with two 75MVA, 220/132kV substation at Lessos. During the year under review, route survey was

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Report of the Managing Director & Ceo completed, ESIA variation licence renewed and evaluation of technical proposals for final RAP completed.

612 km Ethiopia - Kenya Interconnector The project seeks to link the transmission network in Eastern Africa through construction of a 500kV HVDC bipole transmission line running from Sodo in Ethiopia and terminating at Suswa in Kenya where a 2,000MW converter/inverter station and a 400/220kV substation will be built. During the period under review, draft report on optimum line route was completed, and a draft RAP report received.

100 km Isinya - Arusha - Singida 400kV line The project, also referred to as Kenya-Tanzania-Zambia interconnector, will link the network in Kenya to the South African Power Pool through construction of a 400kV double circuit transmission line from Isinya to Arusha. Feasibility studies have commenced.

OTHER ACHIEVEMENTS An enabling organization structure and work environment is a prerequisite to the Company delivering on its mandate. In this regard, KETRACO embarked on review and strengthening of the existing frameworks in order to align them to its corporate strategy.

Important milestones which were attained are enumerated here below. • Human Resource Development While recognizing that human resource is the fundamental resource that drives performance and delivery of corporate objectives, it has been KETRACO’s endeavour to ensure that each and every employee adds value and is properly placed within the organisation.

In order to strengthen the human resource, an internal skills and competence assessment was carried out and gaps identified and addressed. Additional staff were recruited during the year,

As part of capacity building, KETRACO has recruited 20 Graduate Engineers who will help achieve the ambitious 5000 kilometres of new transmission lines across the country. They are seen here training at the KPLC Training School before proceeding to India for advance training.

The Kenya Electricity Transmission Company Limited

Annual Report

& Financial statements

23

Report of the Managing Director & Ceo leading to increase in the staff complement from 62 to 107 at the close of the year. In order to improve skills and competencies, staff attended workshops, seminars, and specialised courses both locally and abroad. Under the framework of the existing MoU, our twenty newly recruited engineers undertook six months’ induction training in Kenya Power. In partnership with the World Bank, PowerGrid of India trained the same graduate engineers in transmission design and engineering for a period of ten weeks in India.

Government Training Institute (GTI) Mombasa consultants also carried out a survey that analysed training and professional development. The Company implemented the recommendations of the survey and competency development level increased from 57.6% to 62.7%. A comprehensive job evaluation exercise is currently under way.

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In order to optimize on employee potential, the Company undertook activities to improve on the working environment.

Requisite furniture, fittings, tools and equipment both for the field and office staff were provided. Additional vehicles were also purchased to ensure adequate transport.

The Company complied with its Safety, Health and Environment (SHE) policy and the Occupational Safety & Health Act. There is a medical Insurance Scheme in place to enhance health care for staff. Staff team building activities were undertaken as well. An employee satisfaction baseline survey carried out at the beginning of the year had revealed an employee satisfacation index of 71.7% while the satisfaction survey undertaken at the close of the year revealed the satisfaction index had risen to 77%.

• Automation of Operations The Company is committed to building and investing in worldclass modern ICT enabled infrastructure in order to enhance its operations and service delivery. Towards this objective, all the transmission lines have been designed incorporating 48 core Optical Pilot Ground Wire (OPGW) to facilitate the use of Supervisory Control & Data Acquisition and Energy Management Systems (SCADA/EMS) for automated operations. Excess fibres will be leased to Service Providers.

A fully equipped server room was set-up with clean power, close control air conditioning and humidity control, afire detection and Annual Report

suppression system and an anti-static raised floor for cooling and cable management. It houses two racks which hold various servers, Cisco Call Management equipment and software, switches, a Cisco firewall, an internet router, a voice gateway router, a Storage Area Network (SAN) and UPSes Desktop and laptop computers, servers and security solutions were purchased and installed. For internal and external communication, a corporate intranet was operationalized and a website developed which is updated on a regular basis. Internet availability has been at 98% as per the internet service provider’s service level agreement.

A comprehensive ICT Policy and Procedures document which seeks to guide ICT staff and users of information and ICT resources on appropriate standards to be adopted at KETRACO was developed and to enhance security of ICT, a policy on computer usage and passwords was issued to staff. UPS were also installed for all desktop users. To enhance security in the premises, IP Access Control was implemented and proximity cards were issued to all staff and IP CCTV with web access view of camera feeds installed.

A Geographical Information System (GIS) called ArcGIS was implemented for analysis and geoprocessing of aerial survey data (LiDDAR), cadastral and other transmission line route data thus improving functional efficiency. A temporary financial solution, Microsoft GP Dynamics was also implemented. Fuel cards and a GPS system were introduced for monitoring motor vehicles operations. The Company having identified the need for an integrated management solution commenced the process of procuring an Enterprise Resource Planning (ERP) solution.

• Performance Management Performance management is critical to realization of objectives.

The Company made efforts to streamline and institutionalize performance management across the organization through design and implementation of a performance monitoring, evaluation and reporting framework. A Monitoring and Evaluation Committee was formed which met regularly to discuss the reports and make recommendations. As part of broader Public Sector reforms introduced by the Government to instil efficiency and effectiveness in management of public services, the Company signed its second Performance Contract for 2010/2011 between the Board and Government which was cascaded to the divisions/ departments. In the annual evaluation for 2010/11, the Company

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

members of the board during inspection tour of mombasa - nairobi transmission line currently under construction

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The Kenya Electricity Transmission Company Limited

Report of the Managing Director & Ceo achieved a total weighted score of 2.4523 and its performance was rated as “Very Good”.

• Compliance with Legal and Regulatory Framework The Company adheres to good corporate governance practice.

The Company complied with all statutory obligations including tax remittances and deductions for NSSF, NHIF & HELB were made. During the year, a code of conduct was developed and is under implementation while preparation of a Board Manual and Charter to guide Board operations is underway. In order to have a framework for wheeling agreements and ensure financial sustainability, draft wheeling and O&M term sheets were prepared.

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• Management of Corporate Risk The Company undertook measures to manage risk that may arise in the course of doing business. A Board Audit and Risk committee is in place and held four meetings during the year. A Risk Management Committee was formed consisting of Heads of Departments which provides operational support to Board committee. Risk assessment for all the departments was conducted and top twenty risks identified for management attention. A consultant was identified and contracted to provide consultancy services for development of Enterprise Risk Management (ERM) framework.To mitigate on external risks, insurance cover was taken for all Company assets including movable assets and human capital.

A legal audit of Company operations and on-going contracts was carried out during the year under review.

• Research and Development Policy In recognition that Research & Development holds the key to solving the challenges that hamper the development of network infrastructure, the Company reviewed the Research & Development (R & D) Policy. The R & D policy will guide research efforts in the electricity transmission services within the Company undertaken by staff or other partners. A draft research paper on cost effective electricity transmission technology was prepared that will be used in conducting a baseline survey.

• ISO Certification In order to streamline its business systems and procedures, the Company had commenced on the ISO Certification process in the previous year and during the year under review, significant progress was made towards ISO certification. Specifically the Company drafted the Quality Policy Objectives and Manual. A Annual Report

consultant to guide the Company in the process was contracted and an inception report received. Staff members have been sensitized on ISO, GAP analysis carried out and operational procedures documented and validated. By the end of the financial year, 70% of the ISO certification process had been achieved.

• HIV/AIDS at the work place In recognition of the possible impact HIV/AIDS can have in the work place for victims and other employees, the Company carried out HIV/AIDS awareness campaign workshops for employees and continued providing condoms through dispensers in all washrooms while a HIV/AIDS baseline survey was conducted. A report was submitted by the consultant and will inform activities on HIV/AIDS issues in the Company.

• Drugs and Substance issues at the work place Drugs and Substance abuse can have a detrimental effect on employee performance and in order to mainstream drugs & substance issues in the Company, sensitization was undertaken through workshops and publicized on posters displays. A drugs and substance baseline survey was conducted during the year and a report submitted by the consultant. Its recommendations are under implementation.

• Gender and Disability mainstreaming at the work place In order to address gender-based issues in the work place, gender mainstreaming was done through collection of gender desegregated data and sensitization of employees through workshops. Gender parity was maintained during recruitment by implementing Government’s gender policy in the Public Service.

In addition, disability mainstreaming was carried out through awareness workshops for staff to make the work place friendly to people with disabilities.

• Integrity Measures In continuing efforts towards good corporate governance, the Company undertook measures that would enhance integrity at the work place. The Integrity Committee was operationalized, members sensitized on integrity testing and a Programme Officer appointed. In addition, two staff members were trained as Integrity Assurance Officers (IAOs). Other members of staff were sensitized in an integrity workshop facilitated by Ethics & AntiCorruption Commission (EACC). Copies of the Anti-Corruption and Economic Crimes Act, 2003, the Public Officer Ethics Act,

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Report of the Managing Director & Ceo 2003 and the Public Service Commission Code of Conduct and Ethics were distributed to staff. The Company drafted Gift & Benefit and Conflict of Interest Policies and Anti-Fraud and Fraud Response Policy. Quarterly reports were submitted to KACC. A corruption perception baseline survey was undertaken and a report submitted which revealed a baseline index of 16.5% that indicates a low perception of corruption in KETRACO. • Service Delivery Charter During the year, the Service Delivery Charter was reviewed to make it more user- friendly. Dissemination of the service charter was made through distribution to stakeholders and displays positioned at strategic locations within KETRACO premises. The Company undertook to implement its activities by complying with the provisions in its service delivery charter. A customer satisfaction baseline survey was conducted at the beginning of the year which had shown an index of 64.74% while a survey conducted at the end of the period showed a customer satisfaction index of 71.90%.

• Service Delivery Innovations The Company in realization that innovation is the driver of growth introduced a service delivery innovation involving use of LiDDAR technology that simplifies the process of route survey and makes way-leaves acquisition more efficient.

• Resolution of Public Complaints During the year, the Company made several efforts towards resolution of public complaints in continuation of the previous year’s initiatives. Complaints handling procedure was prepared and communicated to staff. A complaints desk was established and a Public Complaints Desk Officer appointed. Dedicated telephone lines and email address were made available for receiving public complaints. Four (4) quarterly reports were submitted to the Public Complaints Standing Committee and a certificate was issued to the Company.

Corporate Social Responsibility KETRACO has a Corporate Social Responsibility Policy that

A landowner affected by the construction of the Rabai-Malindi-Garsen-Lamu shows a plan of a new house during a monitoring & evaluation tour by some members of Board of Directors and Management of KETRACO.

The Kenya Electricity Transmission Company Limited

Annual Report

& Financial statements

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Report of the Managing Director & Ceo guides its operations. In line with this policy, and as a responsible corporate citizen, the Company continues to engage in various activities that ensure that its operations are responsible socially, environmentally and ethically. In particular, we also engage in supporting industry and sector initiatives aimed at ensuring capacity building, best practices and sustainability.

KETRACO also ensures that its operations are carried out observing humane and best practices taking into account that construction of transmission lines may involve outright acquisition of land and/or wayleaves access, , which may disrupt way of life of the project affected persons. KETRACO ensures that all projects are carried out through a consultative process with stakeholders.

In carrying out its operations KETRACO complies with the provisions of its Service Charter.

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In fulfilling its CSR commitment, the Company: • endeavours to implement projects in compliance with all

applicable legal, regulatory safety, health and environmental requirements; • seeks to partner with stakeholders in appropriate community development programs within the laid down procedures; • ensures that our contractors use sustainable processes, and materials that avoid adverse effects on air, water and soil and maintain the environmental health of the communities in which we operate; and • Encourage staff- driven charity & voluntary work.

Focus Areas Due to the nature of operations and projects implemented in far-flung areas, KETRACO will endeavour to adopt an integrated approach to ensure that during project conception, societal and environmental concerns particularly those encompassing: Education; Health; Water; Rural Lighting; Environment; Culture, Sports & Recreation; and Capacity Building are embraced.

Malindi DC is assisted by Mr. Yao of CAMCE, the EPC Contractors of the Rabai-Malindi-Garsen-Lamu line during the handover ceremony of a classroom block donated by the CAMCE to the local Gede Community

Annual Report

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Report of the Managing Director & Ceo

Staff of KETRACO donating blankets for the Sinai Fire Tragedy Victims at Tom Mboya Hall off Jogoo Road in Nairobi

During the year KETRACO engaged in the following specific activities: • building of a classroom block for Gede community in partnership with the contractor for Rabai-Malindi-GarsenLamu project; • sponsored and participated in the 2nd national energy conference; • supported the planned Turkwell peace race, an event which endeavours to bring peaceful co-existence communities in the north rift; and • donated clothing, bedding materials to the victims of the Sinai Fire Disaster through staff initiatives.

KETRACO understands that the actions and conduct of each of its employees, contractors and its other agents are the basis upon which our stakeholders will evaluate our commitment to achieving the highest standards of corporate social responsibility as we implement our core mandate.

towards the realization of the Nation’s Vision 2030. It will continue to maintain an environment which values its customers, shareholders, development partners, customers, employees, suppliers, local communities, the public and other stakeholders.

With continued support of the Government, the Board of directors, staff, customers, suppliers and other stakeholders and deepening our culture of teamwork, professionalism, creativity, innovation and commitment, we promise to deliver on our Vision.

ENG. JOEL KIILU MANAGING DIRECTOR & CEO 8th January, 2012

GOING FORWARD The Company will continue to discharge its core mandate of development and operation of grid network infrastructure

The Kenya Electricity Transmission Company Limited

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Ripoti ya Mkurugenzi Mkuu na pia Afisa Mtendaji Mkuu “Mipango mingine ambayo ilianzishwa mwaka huo ni pamoja na kuongeza uwezo wa rasilimali watu na kuboresha mazingira ya kazi, sakinisho ya miundombinu za Teknolojia ya Habari na Mawasiliano (ICT), tathmini ya mifumo zilizopo za kisheria na udhibiti, Usimamizi wa Hatari katika Biashara, tathmini ya mfumo wa uongozi wa shirika na kuanzishwa kwa utaratibu wa utoaji wa huduma�

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Eng Joel M. Kiilu mkurugenzi mkuu na pia afisa mtendaji mkuu

N

MUHTASARI i fursa nyingine ya furaha kwangu kuwasilisha muhtasari wa utendaji kazi wa KETRACO kwa kipindi kilichomalizika tarehe 30 Juni, 2011.

Kampuni iliaanzisha mpango kabambe wa kupanua miundombinu za mtandao wa usambazaji wa umeme kwa kendeleza utekelezaji wa miradi iliyoanzishwa mwaka uliotangulia, na pia miradi mingine mipya iliyoanzishwa katika kipindi cha mwaka unaoangaziwa.

Mipango mingine ambayo ilianzishwa mwaka huo ni pamoja na kuongeza uwezo wa rasilimali watu na kuboresha mazingira ya kazi, sakinisho ya miundombinu za Teknolojia ya Habari na Mawasiliano (ICT), tathmini ya mifumo zilizopo za kisheria na udhibiti, Usimamizi wa Hatari katika Biashara, tathmini ya mfumo wa uongozi wa shirika na kuanzishwa kwa utaratibu wa utoaji wa huduma .

Annual Report

MIRADI YA MIUNDOMBINU YA USAMBAZAJI WA NGUVU YA UMEME Sekta ya nguvu ya umeme nchini Kenya kwa muda mrefu imekuwa inakabiliwa na changamoto za uwezo duni wa utendaji kazi, vikwazo vya ugavi, uwezo mdogo wa usambazaji na ugavi unaosababisha hasara kubwa katika usambazaji na katika mtandao wa ugavi.

Katika kutekeleza azma ya mamlaka yake ambayo ni ya kupanga, kubuni, kujenga, kuendesha na kudumisha miundombinu ya usambazaji wa umeme wa volti kubwa (132kV na zaidi), Kampuni inabuni gridi mpya ya kitaifa iliyo imara na madhubuti ili kurekebisha hali hii. Kahusiana na suala hili, idadi ya miradi ambayo imepangwa kutekelezwa katika muda mfupi na wa kati, ikiwa chini ya makundi yafuatayo: i) Miradi ambayo itaongeza upatikanaji na kukabiliana na

changamoto za mpenyo na uunganishwaji wa chini. ii) Kuimarisha mfumo na miradi ya kukuza uwezo ambayo

itakabiliana na changamoto za volti ndogo, hasara za

usambazaji wa volti kubwa, kutotegemeka kwa usambazaji

na usalama wa mtandao. iii) Miradi ambayo itasaidia kupokea nguvu kutoka vituo vya

uzalishaji hadi maeneo ya mahitaji. iv) Uunganishaji wa nguvu ya umeme katika kanda hii pamoja

na nchi jirani ambazo zinalenga kuimarisha utulivu katika

nguvu ya umeme kwa kuwezesha biashara ya umeme.

I Miradi ya Upatikanaji wa Umeme Ili kuongeza upatikanaji na kukabiliana na changamoto za upenyo na uunganishaji wa hali ya chini, miradi mbalimbali imepangwa kutekelezwa chini ya Mpango wa Kuongeza na Kupenyeza Umeme ( Energy Access Scale-up Program). Miradi chini ya mpango huu ni kama ifuatavyo:

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Ripoti ya Mkurugenzi Mkuu na pia Afisa Mtendaji Mkuu (a) Mradi wa Upanuzi wa Umeme nchini Kenya -

unaofadhiliwa na Benki ya Dunia.

Huu ni mradi wa upanuzi wa umeme unaohusisha uzalishaji,

ugavi na usambazaji. Usambazaji wa laini ya 132kV na vituo

husika ambavyo viko chini ya sehemu ya usambazaji ni; i) Kilometa 250 Kindaruma-Mwingi-Garissa

ii) Kilometa 60 Eldoret-Kitale

iii) Kilometa 44 Kisii-Awendo (b) Mradi wa Uboreshaji wa Mfumo wa Usambazaji wa Umeme - unaofadhiliwa na AfDB

Mradi wa Uboreshaji wa Mfumo wa Usambazaji wa Umeme

unahusisha ujenzi wa laini ya 132kV na vituo husika. Laini za

usambazaji zinazofadhiliwa chini ya mradi huu ni: i) Kilometa 79 Nanyuki-Nyahururu

ii) Kilometa 65 Lessos-Kabarnet

iii) Kilometa 68 Olkaria-Narok

iv) Kilometa 33 Sotik-Bomet

v) Kilometa 153 Mwingi-Kitui-Wote-Sultan Hamud

vi) Kilometa 33 Ishiara-Kieni (c) Mradi wa Uboreshaji wa Mfumo wa Usambazaji wa Umeme - Unaohifadhiliwa na Serikali ya Ubelgiji.

Laini za Usambazaji wa Umeme za 132kV chini ya mpango

huu ni:

i)

ii) iii)

Kilometa 67 Kilimambogo-Thika-Githambo (Kilometa 17 saketi ya pili na Kilometa 50 saketi ya kwanza) Kilometa 20 Thika-Nyaga (Kiganjo) Kilometa 96 Nanyuki-Isiolo-Meru

(d) Mradi wa Mfumo wa Usambazaji wa Umeme - Unaofadhiliwa na Serikali ya Kenya

Serikali inafadhiili moja kwa moja laini ya Usambazaji wa Umeme ya 132kV, Kilometa 34 Mumias-Rangala.

II Miradi ya Uimarishaji wa Mfumo wa Usambazaji wa Umeme Miradi ya Uimarishaji wa Mfumo wa Usambazaji wa Umeme inadhamiria kuongeza uwezo wa uhamishaji umeme kwa gridi ya taifa.Hii ni pamoja na: i) Kilometa 320 Rabai-Malindi-Garsen-Lamu za laini ya 220 kV

saketi moja ambayo inakusudia kuunganisha Bandari ya

Lamu kwa Gridi ya Taifa na kuimarisha usambazaji kwa Pwani

Kaskazini. Mradi huu umefadhiliwa na Benki ya Exim ya

China pamoja na Serikali ya Kenya (GoK). ii) Kilometa 475 Mombasa-Nairobi za laini ya 400 kV saketi

mbili ambayo itaongezea uwezo wa uhamisho wa nguvu ya

umeme kati ya Pwani na Nairobi.

Wahandisi wanafunzi wakisimama kwa picha ya pamoja na Power Grid ya India na mameneja wa KETRACO mwanzoni mwa mafunzo yao nchini India.

The Kenya Electricity Transmission Company Limited

Annual Report

& Financial statements

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Ripoti ya Mkurugenzi Mkuu na pia Afisa Mtendaji Mkuu Mradi huu unafadhiliwa na Benki ya Maendeleo ya Afrika

(AfDB), Agence Française de DÊveloppement (AFD), Benki

ya Uwekezaji ya Ulaya (EIB) na Serikali ya Kenya, (GoK). iii) Mradi wa Kilometa 100 Nairobi Ring wa laini ya 400kV

ambayo utaongeza uwezo wa uhamishaji wa nguvu ya

umeme na kuboresha kutegemewa ambao unafadhiliwa na

AFD, EIB na Serikali ya Kenya, (GoK). iv) Kilometa 300 Olkaria-Lessos-Kisumu za laini ya 220kV saketi

mbili ya usambazaji unaofadhiliwa na Shirika la Ushirikiano

wa Kimataifa la Japani (JICA) ambalo litahamisha umeme

kutoka Olkaria Geothermal Power Plant na kuimarisha

uhusiano kati ya sehemu ya Mashariki na Magharibi ya Bonde

la Ufa.

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IIi Miradi ya Uhamishaji wa Umeme Laini hizi za usambazaji wa umeme zitahamisha umeme kutoka vituo vya uzalishaji hadi sehemu za mahitaji: i) laini ya Kilometa 430 ya Loiyangalani-Suswa ya 400kV ya

saketi mbili. ii) Laini ya Kilometa 25 ya Olkaria-Suswa ya 220kV ya saketi

mbili inayotekelezwa na kampuni ya KenGen. iii) Laini ya Kilometa 5 ya Sondu-Sangoro ya 132kV ya saketi

mbili inayotekelezwa na KenGen. IV. Uunganishaji wa Miradi ya Kanda Miradi mitatu ya uunganishaji wa kanda yaani; Kenya-Ethiopia (East Africa Interconnector); Lessos-Tororo na Isinya-Arusha-Singida (Kenya-Tanzania-Zambia) imepangwa na kina kama ifuatavyo: (i) Laini ya Kilometa 612 ya Ethiopia-Suswa (Kenya - Ethiopia Interconnector) ya 500kV ya HVDC ambayo itafadhiliwa

na Benki ya Dunia, AfDB, AFD na Serikali ya Kenya, (GoK).

Mradi huu utaruhusu uagizaji wa nguvu ya umeme, ikianzia

400MW na ikiwa na uwezo wa kuongeza hadi 2000MW

kuingia Kenya kutoka Ethiopia. Laini hiyo pia itatumika katika

ugavi wa umeme hadi nchi nyingine jirani. (ii) Laini ya Kilometa 100 ya Isinya-Arusha-Singida (Kenya- Tanzania-Zambia interconnector) ya 400kV ya saketi mbili

na pia itaunganisha East African Power Pool na South African Power Pool (iii) Laini ya Kilometa 127 ya Lessos - Tororo (Kenya-Uganda

interconnector) ya 220kV ya saketi mbili itakayofadhiliwa

na AfDB na itakayotumika kama nanga ya ugavi wa umeme

Annual Report

katika kanda ya Maziwa Makuu. Hii itaimarisha uwezo wakufanya biashara za nguvu za umeme miongoni mwa nchi katika kanda ya Maziwa Makuu.

Mara tu viunganishi vitakapokamilika, vitajenga soko la kikanda la biashara ya umeme na hivyo basi uimarishaji wa ubora na usambazaji wa umeme katika kanda.

UTEKELEZAJI MIRADI Katika mwanzo wa mwaka wa fedha unaoangaziwa, ujenzi wa laini tano ulikuwa unaendelea. Hizi ni:- Kilimambogo-Thika-Githambo, Mumias-Rangala, Rabai-Malindi-Garsen-Lamu, Mombasa-Nairobi na Thika-Nyaga. Katika mwisho wa mwaka, miradi yote ilikuwa katika hatua mbalimbali za utekelezaji.

Aidha, Kampuni ilianza mchakato wa utekelezaji wa miradi mingine ikiwa ni: Loiyangalani-Suswa; Suswa-Isinya; Olkaria-Lessos-Kisumu; Kindaruma-Mwingi-Garissa; Eldoret-Kitale, Kisii-Awendo; MeruIsiolo-Nanyuki; Ishiara- Kieni-Embu na Nairobi Ring. Miradi mingine ambayo ilianza katika kipindi hicho ilikuwa ni: Nanyuki-Nyahururu, Lessos-Kabarnet; Olkaria-Narok, Bomet-Sotik, na Mwingi - Kitui - Wote - Sultan Hamud. Taarifa kamili ya utekelezaji wa kila mojawapo ya miradi hii imenakiliwa hapa chini.

Laini ya Kilometa 67 ya Kilimambogo-Thika-Githambo ya 132kV. Laini ni ya Kilometa 17 ya saketi mbili ya 132kV kutoka Kilimambogo hadi Thika na laini ya Kilometa 50 ya saketi mbili kutoka ThikaGithambo ikiwa na vituo viwili vya 23 MVA 132/33kV kule Thika na Githambo. Katika mwaka husika, tulipata Haki za Kupita za kwenye mali ya binafsi za Kilometa 62, ujenzi wa misingi ya minara 89 ikakamilika, minara 55 ikajengwa na Kilometa 20 za nyaya kuunganishwa. Mradi huu unatarajiwa kukamilika mnamo Machi 2012.

Laini ya Kilometa 20 Thika-Nyaga ya 132kV. Laini hii ya 132kV ya saketi moja ni upanuzi wa Kilometa 20 za laini ya Kilimambogo-Thika-Githambo, ikiwa na kituo cha 23 MVA 132/33kV kule Kiganjo. Haki za Kupita za Kilometa 12 zimepeanwa na minara 7 kujengwa katika mwaka huo. Mradi huu unatarajiwa kukamilika Machi, 2012.

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EQUIPMENT IN A SUB-STATION

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The Kenya Electricity Transmission Company Limited

Annual Report

& Financial statements

Ripoti ya Mkurugenzi Mkuu na pia Afisa Mtendaji Mkuu Laini ya Kilometa 34 ya Mumias-Rangala ya 132kV. Mradi huu unahusu ujenzi wa laini ya 132kV ya saketi moja, ikiwa na vituo viwili vya 23 MVA, 132/33kV kule Mumias na Rangala na vituo vidogo sita (6) vya 33kV. Upatikanaji wa Haki za Kupita umekamilika kwa Kilometa 29, miundo ya uhandisi imekamilika na ugunduzi wa minara umekamilika pia katika kipindi husika. Mradi huu unatarajiwa kukamilika Machi 2012.

Laini ya Kilometa 475 ya Mombasa-Nairobi ya 400/220kV Mradi wa laini ya Mombasa-Nairobi unahusu ujenzi wa laini ya 400kV ya saketi mbili kutoka Mombasa hadi Nairobi ikiwa na upanuzi wa vituo vya Rabai na Embakasi. Katika mwaka huo, uchunguzi wa njia ya laini ulikamilika, Haki za Kupita zikapeanwa kwa Kilometa 455, miundo kukamilika na ugunduzi wa minara kukamilika. Mradi huu unatarajiwa kukamilika Machi 2013 na uko katika wakati unaofaa.

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Laini ya Kilometa 320 ya Rabai-Malindi-Garsen-Lamu ya 220kV Mradi huu unahusu ujenzi wa laini ya 220kV ya saketi moja kutoka Rabai kupitia Malindi, Garsen na Lamu ikiwa na vituo vitatu vya 23MVA kule Malindi, Garsen, na Lamu. Katika kipindi cha mwaka, ripoti ya ESIA ilikamilika na kuwasilishwa kwa NEMA huku uchunguzi wa njia ukiendelea. Haki za Kupita za Kilometa 155 na ardhi ya ujenzi wa kituo cha Garsen ilinunuliwa na mhandisi mshauri kushirikishwa. Mradi huu unatarajiwa kukamilika mwezi wa Desemba, 2012.

Laini ya Kilometa 430 ya Loiyangalani-Suswa ya 400kV Mradi huu unahusu ujenzi wa laini ya 400kV ya saketi mbili kutoka Loiyangalani hadi Suswa ikiwa na kituo cha 400kV kule Loiyangalani na kingine cha 400/220kV kule Suswa. Laini itapeleka umeme wa 300MW kutoka mtambo wa Lake Turkana Wind Power hadi kituo cha Suswa. Uchunguzi wa njia umekamilika na Haki za Kupita za Kilometa 120 kupeanwa, na pia mkataba wa EPC umeanzishwa.

Ujenzi wa laini umepangwa kuanza mwezi wa Aprili 2012 na unatarajiwa kukamilika baada ya miezi 23 mnamo Machi 2014.

Laini ya Nairobi na Vituo vya Nairobi Wigo wa mradi unahusu ujenzi wa Kilometa 100 kutoka IsinyaSuswa za 400kV ya saketi mbili na vituo sita vya 220/66kV. Vituo hivyo vitajengwa Ngong, Athi River, Suswa, Isinya, Koma Rock na Thika Road. Upembuzi yakinifu rasimu ulikamilika mwaka unaoangaziwa. Mhandisi mshauri ameshirikiswa, Rasimu ya ripoti za ESIA na RAP zimekamilika na hata nyaraka za zabuni ya mkataba Annual Report

kuu kukamilika. Mradi huu unatarajiwa kukamilika ifikapo mwezi wa Desemba 2013.

Laini ya Kilometa 250 ya Kindaruma-Mwingi-Garissa ya 132kV Mradi huu utahusisha ujenzi wa laini ya 132kV ya saketi moja kutoka Kindaruma hadi Garissa kupitia Mwingi na kituo cha 7.5MVA, 132/33kV kule Mwingi na vingine vya 7.5MVA, 132/33kV na 7.5MVA, 132/11kV kule Garissa. Kilometa 69 za njia ya laini imechunguzwa na Haki za Kupita za Kilometa 52 kutiwa saini.

Ununuzi wa ardhi ya kujenga hicho kituo unaoendelea. Mradi huu unatarajiwa kukamilika mnamo Desemba 2013.

Laini ya Kilometa 60 ya Eldoret-Kitale ya 132kV. Laini ya Eldoret hadi Kitale ya 132kV ya saketi moja ya umeme itakuwa na kituo cha 23MVA, 132/33kV kule Kitale. Utafiti wa Kilometa 40 wa njia ya laini umekamilika, huku nyaraka za zabuni kukamilika na pia utafutaji wa mkandarasi unaendelea ukiwa katika hatua ya mwisho. Mradi huu unatarajiwa kukamilika mnamo Desemba 2013.

Laini ya Kilometa 44 km ya Kisii-Awendo ya 132kV. Mradi utahusisha ujenzi wa laini ya 132kV ya saketi moja ya umeme kutoka Kisii hadi Awendo na kituo cha 23 MVA, 132/33kV kule Awendo. Uchunguzi wa njia ya laini umekamilika na utoaji wa zabuni kwa mkandarasi mkuu ulianzishwa mwakani. Mradi huu unatarajiwa kukamilika ifikapo Desemba 2013.

Laini ya Kilometa 300 ya Olkaria-Lessos-Kisumu ya 220kV. Mradi huu utahusisha ujenzi wa laini ya 220kV ya saketi mbili za umeme kutoka Olkaria kupitia Lessos na Kisumu. Uchunguzi wa njia ya laini umekamilika na mhandisi mshauri amepatikana. Mradi huu unatarajiwa kukamilika ifikapo Desemba 2014.

Laini ya Kilometa 65 ya Lessos-Kabarnet ya 132kV. Mradi huu utahusisha ujenzi wa laini ya 132kV ya saketi moja ya umeme kutoka Lessos hadi Kabarnet na kituo cha 15MVA, 132/33kV kule Kabarnet. Uchunguzi wa njia yote ya laini ulikamilika katika kipindi kinachoangaziwa. Mradi huu unatarajiwa kukamilika ifikapo Juni 2014.

Laini ya Kilometa 96 Nanyuki-Nyahururu ya 132kV Mradi huu unahusu ujenzi wa laini ya 132kV ya saketi moja ya umeme kutoka Nanyuki hadi Nyahururu ikiwa na kituo cha

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Ripoti ya Mkurugenzi Mkuu na pia Afisa Mtendaji Mkuu

Kazi ya ujenzi wa kituo cha Thika cha 132kV ambacho ni sehemu ya mradi wa laini ya Kilimambogo-Thika-Githambo

23MVA, 132/33kV kule Nyahururu. Uchunguzi wa njia ya laini ulikamilika. Mradi huo unatarajiwa kukamilika ifikapo Juni 2014 Laini ya Kilometa 68 ya Olkaria-Narok ya 132kV Laini ya Olkaria hadi Narok inahusu ujenzi wa laini ya 132kV inayobeba saketi moja ya umeme ikiwa na kituo cha 23 MVA, 132/33kV kule Narok. Uchunguzi wa njia ya laini ulikamilika huku ripoti ya ESIA ya kituo cha Narok kupelekwa kwa NEMA kwa ajili ya utoaji wa leseni. Mradi huu unatarajiwa kukamilika ifikapo Juni 2014.

Laini ya Kilometa 33 ya Sotik-Bomet ya 132kV Laini ya Bomet hadi Sotik itahusisha ujenzi wa laini ya 132kV ya saketi moja ya umeme na kituo cha 23MVA,132/33kV kule Bomet. Uchunguzi wa njia ya laini na ripoti ya ESIA / RAP ya kituo ulikamilika katika kipindi cha mwaka unaoangaziwa. Mradi huu unatarajiwa kukamilika ifikapo Juni 2014.

Laini ya Kilometa 153 ya Mwingi-Kitui-Wote - Sultan Hamud ya 132kV. Mradi huu unahusisha ujenzi wa laini ya 132kV ya saketi moja ya umeme kutoka Mwingi kupitia Kitui, Wote hadi Sultan Hamud na vituo vinne vya 15MVA, 132/33kV kule Kitui, Wote, na Sultan Hamud. Wakati wa kipindi hiki, uchunguzi wa njia ya laini ya Kilometa 35 ulikamilika. Mradi huu unatarajiwa kukamilika ifikapo Juni 2014.

Laini ya Kilometa 33 ya Ishiara-Kieni ya 132kV. Ujenzi wa laini ya 132kV ya saketi moja kutoka Ishiara hadi Kieni na kituo kimoja cha 23MVA, 132/33kV kule Kieni ndivyo vipengele vikuu vya mradi huu. Uchunguzi wa njia ya laini ulikamilika katika kipindi kinachoangaziwa. Mradi huu unatarajiwa kukamilika ifikapo Juni 2014.

Laini ya Kilometa 96 ya Nanyuki-Isiolo-Meru ya 132kV. Mradi huu unajumuisha ujenzi wa laini ya 132kV ya saketi moja ya umeme kutoka Nanyuki kupitia Isiolo na Meru na pia ujenzi wa kituo cha 23MVA, 132/33kV kule Isiolo na kuwekwa kwa transfoma ya ziada ya 23MVA , 132/33kV kule Meru. Uchunguzi wa njia ya laini ya juu ya kilometa 59km imekamilika na mkandarasi wa EPC kuchaguliwa kwa ajili ya mkataba kuu. Mradi huu unatarajiwa kukamilika ifikapo Aprili 2014.

Laini unganishi ya Kilometa 127 ya Lessos-Tororo ya 220kV Mradi huu unaunganisha nchi ya Kenya na nchi nyingine katika kanda ya Maziwa Makuu kupitia mtandao usambazaji wa umeme wa Uganda na utahusisha ujenzi wa laini ya Kilomita 127 ya 220kV ya saketi mbili kutoka Lessos hadi Tororo ikiwa na vituo viwili vya 75MVA, 220/132kV kule Lessos. Katika kipindi cha mwaka unaoangaziwa, uchunguzi wa njia ya laini ulikamilika, huku leseni ya ESIA ya kufanya mabadiliko ilifanywa upya na tathmini ya mapendekezo ya kiufundi ya RAP ya mwisho kukamilika.

The Kenya Electricity Transmission Company Limited

Annual Report

& Financial statements

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Ripoti ya Mkurugenzi Mkuu na pia Afisa Mtendaji Mkuu

Mwenyekiti, Bw. J. Kageenu akiungana na Mwenyekiti wa Kamati ndogo ya Malipo, Mchungaji (Dkt.) J. Mutura & mameneja waandamizi wakati wa kusahihisha Mkataba wa Utendaji na Katibu wa Kudumu wa Wizara ya Nishati, Bw. Patrick Nyoike.

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Laini ya Kilometa 612 km ya Kiunganishi Ethiopia-Kenya Mradi huo una lengo la kuunganisha mtandao wa usambazaji wa umeme katika Afrika Mashariki kupitia ujenzi wa laini ya HVDC ya 500kV aina ya bipole kutoka Sodo nchini Ethiopia hadi kule Suswa nchini Kenya ambapo kituo cha mtambo wa kubadilisha umeme (Converter/Inverter) wa 2000 MW na kituo kidogo cha 400/220kV pia kitajengwa. Wakati wa kipindi hiki, ripoti rasimu ya njia bora ya kupitishia na kujenga hii laini ilikamilika, na ripoti rasimu ya RAP ilipokewa.

Laini ya Kilometa 100 ya Isinya - Arusha - Singida 400kV. Mradi huu, pia unajulikana kama Kiunganishi Kenya-TanzaniaZambia, utaunganisha mtandao wa umeme wa Kenya na ule wa South Africa Power Pool kupitia ujenzi wa laini ya 400kV ya saketi mbili ya umeme kutoka Isinya hadi Arusha. Upembuzi yakinifu umeanzishwa.

MAFANIKIO MENGINE Mazingira bora ya kufanyia kazi na muundo wa uongozi bora ni muhimu ili kuwezesha Kampuni kutoa wajibu wake inavyostahili.

Kuhusu suala hili, KETRACO ilianzisha kuimarisha mifumo ili kuiambatanisha na mikakati ya kampuni. Hatua muhimu ambazo zilizoafikiwa zimeorodheshwa hapa chini.

Kuendeleza Uwezo wa wafanyakazi Huku ikitambuliwa kwamba wafanyakazi ni raslimali ya msingi Annual Report

ambayo inaendesha utendaji na uafikiaji wa malengo ya kampuni, KETRACO inajitahidi kuhakikisha kwamba kila mmoja wa wafanyakazi wake anajiongezea thamani na kwamba amewekwa mahali anapostahiki katika kampuni.

Ili kuimarisha wafanyakazi, tathmini ya ndani ya ujuzi na uwezo ulifanywa na mapengo kutambuliwa na kushughulikiwa.Wafanyakazi wa ziada waliajiriwa katika mwaka na kusababisha kuongezeka kwa idadi ya wafanyikazi kutoka 62 hadi 107 kufikia mwisho mwaka.

Ili kuboresha ujuzi na uwezo, wafanyikazi walihudhuria warsha, semina, na mafunzo maalumu huku nchini na pia nchi za ng’ambo.

Chini ya mkakati wa makubaliano yaliyopo, wahandisi wetu ishirini walioajiriwa hivi karibuni, walipata mafunzo ya miezi sita kule Kenya Power. Kwa kushirikiana na Benki ya Dunia, PowerGrid ya India ilifunza wahandisi hao katika miundo ya usambazaji na uhandisi kwa kipindi cha majuma kumi nchini India.

Washauri wa Taasisi ya Mafunzo ya Serikali (GTI) Mombasa pia walifanya uchunguzi ambao ulichambua maendeleo ya mafunzo na ukuaji wa utaalamu. Kampuni ilitekeleza mapendekezo ya huo utafiti ambayo yaliwezesha kiwango cha uwezo kuongezeka kutoka 57.6% hadi 62.7%. Zoezi la tathmini ya kina ya ajira inaendelea kwa sasa.

Ili kuongeza uwezo wa mfanyikazi, Kampuni ilifanya shughuli za

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Ripoti ya Mkurugenzi Mkuu na pia Afisa Mtendaji Mkuu kuboresha mazingira ya kufanyia kazi. Fanicha zinazohitajika, zana na vifaa vya wafanyikazi wa ofisi na pia wa nyanjani vilitolewa.

Magari ya ziada pia yalinunuliwa ili kuhakikisha usafiri wa kutosha.

Kampuni ilizingatia sera ya Usalama, Afya na Mazingira (SHE), na pia sheria ya Usalama na Afya Kazini. Kuna mfuko wa Bima ya matibabu ili kuimarisha huduma za afya kwa wafanyikazi. Shughuli za kuimarisha umoja wa kikundi kwa wafanyikazi zilifanyika pia. Utafiti wa msingi wa kuridhika kwa mfanyikazi uliofanywa mwanzoni mwa mwaka na ulionyesha fahirisi ya kuridhika ya 71.7% ilhali utafiti wa kuridhika kwa mfanyikazi uliofanywa wakati wa kufunga mwaka ulidhihirisha kwamba fahirisi imeongezeka kufikia 77%.

Kufanya Oparesheni Kuwa Otomatiki (moja kwa moja) Kampuni ina nia ya kujenga na kuwekeza katika miundombinu ya kisasa ya Teknolojia ya Habari na Mawasiliano ya kiwango cha kimataifa, ili kuwezeshwa uimarishaji wa shughuli zake na utoaji wa huduma. Ili kuafikia lengo hili, laini zote za usambazaji umeme zimeundwa kuchanganya nyaya 48 za aina ya Optical Pilot Ground Wire (OPGW) ili kuwezesha matumizi ya Kudhibiti Usimamizi na Upataji Data na Mifumo ya Usimamizi wa Nishati (SCADA / EMS) kwa ajili ya operesheni za moja kwa moja au otomatiki. Nyuzi ziada zitakodishwa kutoka kwa Watoa Huduma.

Chumba cha Kompyuta tumishi kilicho na vifaa vyote kiliwekewa nishati safi, udhibiti kwa karibu, viyoyozi na unyevu, mfumo wa kutambua na kuzuia moto na sakafu dhidi ya tuli iliyoinuliwa kwa ajili ya kupoesha na utunzi wa nyaya. Chumba hicho kina rafu mbili ambazo zinabeba Kompyuta Tumishi mbalimbali, Vifaa na programu za Cisco za Usimamizi wa Kupiga Simu, swichi, Ngome ya Cisco, Kipanga njia cha wavuti, Kichanganyishi mtandao cha sauti, Mtandao wa Storage Area (SAN), mitambo ya UPS, komputa za aina ya mkononi na Desktop, Kompyuta Tumishi na suluhu za usalama pia zilinunuliwa na sakinishwa.

Kwa mawasiliano ya ndani na ya nje, wavutindani wa kampuni ulianzishwa na tovuti iliundwa ambayo inayosasishwa mara kwa mara. Upatikanaji wa intaneti umekuwa 98% kulingana na viwango vya huduma ya makubaliano ya Watoa Huduma ya Intaneti, ISPs. Waraka wa Taratibu na Sera ya kina ya Teknolojia ya Habari na Mawasiliano (ICT), ambayo inanuia kuongoza wafanyikazi na watumiaji wa raslimali za habari na Teknolojia ya Habari na Mawasiliano kwa viwango vinavyo vinavyostahili, ambazo zitatumika katika kampuni ya KETRACO, ilibuniwa na kuongeza

usalama wa Teknolojia ya Habari na Mawasiliano; sera ya matumizi ya kompyuta na nywila zilitolewa kwa wafanyakazi. Mitambo za UPS pia zilisakinishwa kwa watumiaji wote wa kompyuta za desktop. Ili kuimarisha usalama katika majengo, Dhibiti Ufikivu ya Itifaki ya Wavuti imetekelezwa na kadi za ukaribu zimetolewa kwa wafanyakazi wote, na CCTV ya Itifaki ya Wavuti na kamera za kwa mtandao na kamera za wavuti zimewekwa.

Mfumo wa Taarifa za Kijiografia (GIS) inayoitwa ArcGIS umetekelezwa kwa ajili ya uchambuzi na mchakato wa data ya utafiti wa angani (LiDAR), laini za usambazaji wa data ya cadastral huelekeza data, na kwa njia hivyo kuboresha ufanisi wa kazi. Suluhu la muda la kifedha liitwalo Microsoft GP Dynamics pia lilitekelezwa.

Kadi za mafuta ya petroli na mfumo wa GPS ulianzishwa kwa ajili ya ufuatiliaji wa shughuli za magari. Kampuni baada ya kutambua haja ya kuwa na suluhu la usimamizi jumuishi, ilianzisha mchakato wa ununuzi wa suluhu ya Upangaji wa Matumizi ya Rasilimali (ERP. USIMAMIZI WA UTENDAJI Usimamizi wa Utendaji ni muhimu kwa utekelezaji wa malengo.

Kampuni ilifanya jitihada za kuboresha na kulainisha usimamizi wa utendaji kote katika shirika kwa kubuni na utekelezaji wa mfumo wa ufuatiliaji wa utendaji, tathmini na muundo wa utoaji taarifa.

Kamati ya Ufuatiliaji na Tathmini iliundwa ambayo ilikutana mara kwa mara ili kujadili taarifa na kutoa mapendekezo. Kama sehemu ya mageuzi mapana katika Sekta ya Umma yaliyoanzishwa na Serikali kwa kutia ubora na ufanisi katika usimamizi wa huduma za umma, Kampuni ilitia saini mara ya pili Mkataba wa Utendaji kwa mwaka 2010/2011 kati ya Bodi na Serikali, ambayo pia ilifanyika katika idara zote. Katika tathmini ya kila mwaka ya 2010/11, Kampuni iliafikia jumla ya alama 2.4523 na utendaji wake ulikadiriwa kama “Vizuri Sana�.

UZINGATIAJI WA TARATIBU ZA KISHERIA Kampuni inazingatia mazoea mazuri ya usimamizi wa mashirika.

Kampuni ilizingatia majukumu yote ya kisheria ikiwa ni pamoja na kulipa ushuru na kodi kwa NSSF, NHIF & HELB. Katika mwaka huo, kanuni za maadili zilibuniwa na ziko chini ya utekelezaji, ilhali maandalizi ya Mwongozo wa Bodi na Mkataba wa kuongoza shughuli za Bodi ukiwa unaendelea. Ili kuwa na mfumo wa mikataba ya kurahisisha uendelevu wa kifedha, rasimu na waraka wa Operesheni na Utunzaji uliandaliwa.

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Ripoti ya Mkurugenzi Mkuu na pia Afisa Mtendaji Mkuu USIMAMIZI WA HATARI YA BIASHARA Kampuni ilichukua hatua ya kusimamia hatari zinazoweza kutokea katika hali ya kutekeleza shughuli zake. Kamati ya Halmashauri na Kamati ya Kutathmini Hatari imewekwa na huwa na mikutano minne katika mwaka. Kamati ya Usimamizi wa Hatari iliundwa ikijumuisha Wakuu wa Idara, ambayo inatoa msaada wa uendeshaji kwa Kamati ya Halmashauri.

Tathmini ya hatari katika idara zote ilifanyika, na hatari ishirini za muhimu kutambuliwa ili kupewa kipaumbele na Usimamizi. Mshauri alitambuliwa na kupewa kandarasi ya kutoa huduma ya ushauri ili kubuni muundo wa Usimamizi wa Hatari katika Biashara (ERM).

Ili kupunguza hatari ya nje, bima ilichukuliwa kwa ajili ya mali yote ya Kampuni ikiwa ni pamoja na mali zinazohamishika na wafanyakazi. Ukaguzi wa kisheria wa shughuli za Kampuni na mikataba inayoendelea ulifanyika katika mwaka unaoangaziwa.

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SERA YA UTAFITI NA MAENDELEO Kwa kutambua kwamba Utafiti na Maendeleo vinauwezo wa kutatua changamoto zinazozuia maendeleo ya miundombinu wa mtandao, Kampuni ilifanyia mapitio Sera yake ya Utafiti na Maendeleo (R & D). Sera hiyo ya R & D itaongoza juhudi za utafiti katika huduma za usambazaji wa umeme zinazofanywa na wafanyakazi ndani ya Kampuni, au na washirika wengine.

Rasimu ya jarida la utafiti kuhusu gharama madhubuti ya teknolojia ya usambazaji wa umeme ilitayarishwa, ambayo itatumika katika kufanya utafiti wa kimsingi.

UKIMWI/VVU KATIKA MAENEO YA KAZI Ili kutambua uwezekano wa athari ambayo UKIMWI/VVU vinaweza kuwa nayo katika mahali pa kazi kwa wafanyikazi na waathiriwa, Kampuni iliandaa warsha na kampeni za uhamasisho kwa wafanyakazi, na ikaendelea kutoa mipira ya kondomu kwa kuiweka kwenye vyoo wakati wote huku utafiti wa kimsingi kuhusu UKIMWI/VVU kufanyika. Ripoti hiyo iliwasilishwa na mshauri, na itajulisha shughuli za masuala ya UKIMWI / VVU katika Kampuni.

MADAWA YA KULEVYA NA MASUALA YA UTUMIAJI MBAYA WA MADAWA KATIKA MAHALI PA KAZI Madawa ya kulevya na Utumiaji mbaya wa madawa waweza kuwa na madhara mabaya katika utendaji wa mfanyakazi, na ili kupunguza madawa ya kulevya muhimu na masuala ya utumiaji mbaya wa madawa katika Kampuni, uhamasishaji ulifanyika kupitia warsha na kutangazwa kupitia mabango.Utafiti wa kimsingi kuhusu madawa ya kulevya ulifanywa mwaka uliotangulia na ripoti ikawasilishwa na mshauri. Mapendekezo yanaendelea kutekelezwa.

KULAINISHA MASUALA YA JINSIA NA ULEMAVU KATIKA MAHALI PA KAZI Ili kushughulikia masuala ya kijinsia katika maeneo ya kazi, ulainishaji wa masuala ya jinsia ulifanyika kwa njia ya ukusanyaji wa taarifa za kumaliza ubaguzi wa jinsia, na uhamasishaji wa wafanyakazi kupitia warsha. Usawa wa kijinsia ulidumishwa wakati wa kuajiri kwa kutekeleza sera ya Serikali kuhusu jinsia katika Utumishi wa Umma.

VYETI VYA I.S.O. Ili kuboresha mifumo na taratibu za biashara zake, Kampuni ilikuwa imeanza utaratibu wa kupata vyeti vya ISO mwaka uliotangulia. Kuna maendeleo makubwa ambayo yamepatikana katika kupokea vyeti vya ISO. Hasa, Kampuni ilichapisha rasimu ya Sera na Mwongozo wa Ubora wa Malengo. Mshauri wa kuiongoza Kampuni katika huo utaratibu alipewa kandarasi, na ripoti ya mwanzo kupokelewa.

Wafanyakazi wamekwisha hamasishwa kuhusu ISO, na uchambuzi wa aina ya GAP uliofanywa na taratibu za uendeshaji kazi ukanakiliwa na kudhiditishwa. Kufikia mwisho wa mwaka wa kifedha, 70% ya utaratibu wa kupewa vyeti vya ISO ilikuwa imeafikiwa.

Annual Report

Wanachama wa Bodi wakishauriana na Mkurugenzi Mkuu wa Mumias Sugar Company, Bw Evans Kidero wakati wa ziara ya mradi wa Mumias-Rangala.

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Ripoti ya Mkurugenzi Mkuu na pia Afisa Mtendaji Mkuu Aidha, ulainishaji wa masuala ya ulemavu ulifanyika kwa njia ya warsha za uhamasishaji kwa wafanyakazi ili kufanya mahali pa kufanyia kazi kuwa ya kirafiki kwa watu wenye ulemavu.

HATUA ZA UADILIFU Ili kuendeleza jitihada za uongozi bora, Kampuni ilichukua hatua ambazo zinaweza kuongeza uadilifu katika mahali pa kazi. Kamati ya Uadilifu iliundwa na wanachama kuhamasisha kuhusu kupima uadilifu, na Afisa wa Mpango akateuliwa. Aidha, wafanyakazi wawili walipewa mafunzo kama Maafisa wa Kuhakikisha Uadilifu (IAOs).

Wajumbe wengine wa wafanyakazi walihamasishwa katika semina ya uadilifu iliyoandaliwa na Tume ya Maadili & Kupambana na Ufisadi (EACC). Nakala za Sheria ya mwaka 2003 ya Kupambana na Ufisadi na Uhalifu wa Kiuchumi, Sheria ya mwaka 2003 ya Maadili ya Watumishi wa Umma, na Kanuni na Maadili ya Tume ya Utumishi wa Umma zilisambazwa kwa wafanyakazi.

Kampuni ilirasimu sera za Zawadi & Marupurupu na pia Mgongano wa Maslahi, na hatimaye Sera Kupambana na Kukabiliana na Udanganyifu. Ripoti ya robo mwaka zilipelekwa kwa Tume ya Kupambana na Ufisadi (KACC). Utafiti wa kimsingi kuhusu mtazamo juu ya ufisadi ulifanywa na ripoti kuwasilishwa ambayo ilidhihirisha fahirisi ya kimsingi ya 16.5%, ambayo inaonyesha mtazamo wa chini wa ufisadi katika kampuni ya KETRACO. MKATABA WA UTOAJI HUDUMA Katika mwaka huo, Mkataba wa Utoaji Huduma ulikaguliwa upya, ili kuurahisisha zaidi kwa mtumiaji. Usambazaji wa Mkataba wa Huduma ulifanyika kwa kusambaza nakala kwa wadau na maonyesho ya nakala yaliyowekwa mahali pazuri, katika majengo ya KETRACO. Kampuni ilijitolea ketekeleza shughuli zake kwa kuzingatia masharti ya mkataba wake wa huduma. Utafiti wa kimsingi wa kuridhika kwa wateja ulifanyika mwanzoni mwa mwaka, ambao ulionyesha fahirisi ya kuridhika kwa wateja ya 64.74%, ilhali utafiti uliofanyika mwishoni mwa kipindi hicho ulionyesha fahirisi ya kuridhika kwa wateja ya 71.90%.

UBUNIFU WA UTOAJI HUDUMA Katika kutambua kuwa ubunifu ni kiendeshaji cha ukuaji, Kampuni ilianzisha ubunifu wa utoaji huduma kwa kushirikisha matumizi ya teknolojia ya LiDDAR, ambayo inarahisisha mchakato wa utafiti wa

njia ya kupitishia laini za umeme, na pia kufanya upatikanaji wa Haki za Kupita kuwa bora zaidi.

UTATUZI WA MALALAMIKO YA UMMA Katika mwaka, kampuni ilifanya jitihada kadhaa kuhusu azimio la malalamiko ya umma kukinuwiwa, kuhifadhi au kuendeleza kiwango chamwaka uliotangulia. Utaratibu wa utunzaji wa malalamiko uliandaliwa, na kuwasilishwa kwa wafanyakazi. Meza ya malalamiko ilianzishwa, na Afisa wa kupokea Malalamiko ya Umma kuteuliwa.

Laini spesheli za simu na anwani ya barua pepe zilitengwa kwa ajili ya kupokea malalamiko ya umma. Ripoti nne (4) za robo mwaka zilipelekwa kwa Kamati ya Kudumu ya Malalamiko ya Umma, na cheti kilitolewa kwa Kampuni.

JUKUMU LA KAMPUNI KWA JAMII (C.S.R.) KETRACO ina sera ya Jukumu la Kampuni kwa jamii ambayo huongoza shughuli zake. Kwa mujibu wa sera hii, Kampuni inaendelea na kushiriki katika shughuli mbalimbali zinazohakikisha kwamba shughuli zake zinawajibika kijamii, kimazingira na kimaadili.

Hasa, sisi pia hushiriki katika kusaidia juhudi za sekta ya nishati inayolenga kuhakikisha uongezaji uwezo, mbinu bora na endelevu.

KETRACO pia kuhakikisha kwamba shughuli zake zinafanywa kwa kuzingatia hali za kibinadamu na mbinu bora, huku ikizingatiwa kwamba ujenzi wa laini za umeme na usambazaji zinaweza kuhusisha ununuzi dhahiri wa vipande vya ardhi na / au Haki za Kupita, ambao unaweza kuvuruga njia ya maisha ya watu walioathirika na mradi.

KETRACO kuhakikisha kwamba miradi yote inatekelezwa kupitia mchakato wa mashauriano na wadau. Katika kutekeleza shughuli zake, KETRACO na huzingatia masharti ya Mkataba wake wa Huduma.

•

Katika kutimiza uwajibikaji wake kwa jamii, Kampuni: Inajitahidi kutekeleza miradi kwa kuzingatia mahitaji yote ya kisheria, kiusalama, kiafya na kimazingira;

• Inataka kushirikiana na wadau katika miradi sahihi ya maendeleo ya jamii kufuatia taratibu zilizowekwa;

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Ripoti ya Mkurugenzi Mkuu na pia Afisa Mtendaji Mkuu • Ilichangia nguo na vifaa vya malazi kwa waathiriwa wa Mkasa wa Moto wa Sinai kupitia mipango ya wafanyakazi.

KETRACO inaelewa kuwa vitendo na tabia ya kila mmoja wa wafanyakazi wake, makandarasi na mawakala wake ndio msingi ambao wadau wetu hutathmini kujitolea kwetu, na katika kuafikia viwango vya hali ya juu vya majukumu ya kampuni kwa jamii wakati tunatekeleza majukumu yetu ya msingi.

MWELEKEO Kampuni itaendelea kutekeleza majukumu yake ya msingi ya maendeleo na uendeshaji wa miundombinu ya mtandao wa gridi ya taifa katika utekelezaji wa Dira ya Taifa ya mwaka 2030.

Wafanyikazi wakishiriki katika shughuli za ujenzi wa timu ambazo zinanuia kuimarisha kitengo kilicho na umoja katika kujenga laini za usambazaji umeme za kiwango cha kimataifa.

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• Itahakikisha kuwa makandarasi wetu wanatumia taratibu endelevu, zana na vifaa vinavyoepuka uharibifu wa hewa, maji na udongo na kudumisha afya ya mazingira na ya jamii ambazo tunatekeleza kazi zetu, na •

Kuhamasisha kuhusu kazi inayotokana na upendo na ya hiari.

MAENEO YA KUZINGATIA • Kutokana na asili ya shughuli na miradi iliyotekelezwa katika maeneo ya mbali, KETRACO itajitahidi kupitisha mfumo jumuishi ili kuhakikisha kuwa wakati wa muundo wa mradi, masuala ya jamii na mazingira yanakumbatiwa, na hasa yale ya: Elimu; Afya; Maji; Kuweka taa vijijini, Mazingira, Utamaduni, Michezo & Burudani; na Ujenga wa Uwezo.

Katika mwaka, KETRACO ilijihusisha katika shughuli maalum zifuatazo: •

Itaendelea kudumisha mazingira ambayo yanadhamini wateja wake, wenyehisa, washirika wa maendeleo, wateja, wafanyakazi, wafanyabiashara, jamii, umma na wadau wengine. Pamoja na kuendelea kuungwa mkono na Serikali, Halmashauri ya Wakurugenzi, wafanyakazi, wateja, wauzaji na wadau wengine, na kukuza utamaduni wetu wa kazi ya pamoja, utaaluamu, ubunifu, uvumbuzi na kujitoa, sisi tunaahidi kujitahidi ili kutimiza Maono Yetu.

Mhandisi Joel KIILU MKURUGENZI MKUU NA AFISA MTENDAJI MKUU 8th January, 2012

Ujenzi wa madarasa kwa jamii ya Gede kwa kushirikiana na mkandarasi wa mradi wa Rabai-Malindi- Garsen-Lamu,

• Kufadhili na kushiriki katika mkutano wa kongamano la pili la kitaifa la nishati • Iliunga mkono mbio za Turkwell za amani ambazo zimepangwa, tukio ambalo linanuia kuleta amani na ushirikiano kwa jamii katika Kaskazini mwa Bonde la Ufa. Annual Report

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Corporate Governance Statement Corporate governance is the process and structure used to direct and manage the business affairs of the Company towards enhancing prosperity and corporate accountability with the ultimate objective of realising shareholders’ long term value while taking into account the interest of other stakeholders. The Directors are responsible for the corporate governance practices of the Company. This Statement sets out the main practices in operation during the year under review.

provision of necessary information pertinent to the Company’s business, meetings with Management and training. In this regard, Directors were trained on good corporate governance by the Centre for Corporate Governance during the first six months of incorporation of the Company to ensure that they started on a sure footing by enhancing their skills. The Board attended a workshop on procurement conducted by the Public Procurement Oversight Authority.

Board of Directors The Board of Directors has nine members comprising the Managing Director and eight non-executive directors, including the Chairman. Although incorporated under the Companies Act, Cap 486, the Company is governed under the provisions of State Corporations Act, Cap 446 by virtue of the Company being wholly owned by the Government. The non-executive directors are independent within the meaning of the Capital Markets Authority’s Guidelines on Corporate Governance. Information on directors’ profiles is shown on pages 6,7, 8 and 9.

There is diverse mix of skills in the board, as is shown from the profile of directors elsewhere in this Report which outlines their professional qualifications and experience.

It behoved the Board sitting regularly during the set-up phase of the Company to put in place structures and recruit appropriate staff to commence business. The Board met in accordance with requirements of the business.The Board held a total of 9 meetings during the year, which were very well attended.

The Chairman and Managing Director & Chief Executive Officer play separate roles in the governance structure of the Company.

The Chairman is primarily responsible for the running of the Board and ensuring that it is supplied in a timely manner with sufficient information to enable it to discharge its duties. The Managing Director & CEO is responsible for recommending business plans and the budget to the Board, implementing approved corporate strategies and day to day administration of the Company.

The primary responsibilities of the Board include: defining the vision and mission statements of the Company elucidated in a corporate strategic plan which defines and sets the strategic objectives and goals for the Company; establishment of short and long term goals and ensuring preparation of interim and the annual financial statements; review and approval of the annual budgets for the financial performance of the Company; monitoring performance periodically; managing risks by ensuring that the Company has implemented adequate systems of internal controls together with appropriate monitoring of compliance activities; and working with management to realise mandate of the Company.

There are deliberate measures and plans in place for all Directors to receive appropriate training and to take independent professional advice if necessary. New directors are also well inducted by

Attendance of Board Meetings Name Attendance 1 Mr. Justus Kageenu

9

2 Eng. Julius Mwathani (Alternate Director to Mr. Patrick Nyoike, PS, MOE)

8

3 Eng. Joel Kiilu

9

4 Mr. Domiciano Maingi

8

5 Mr. Daniel K. Mwaura

9

6 Hon. Jimmy Ang’wenyi

9

7 Hon. Jafaar Sheikh

9

8 Rev (Dr) Jessie Mutura

9

9 Mrs. Felister Kivisi (Alternate Director to Mr. Joseph Kinyua, PS, Treasury)

9

Board Committees The following Board Committees were in place during the period under review year:Audit & Risk Committee The Audit & Risk Committee was constituted in February, 2010 and its mandate redefined in April 2010 in line with Treasury Circular No. 16/2005 on establishment and operationalization of

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Corporate Governance Statement ketraco trainee

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2011 audit committees in the Public Service.The Committee comprises five non-executive directors and is chaired by a non-executive director.

The members of the Committee during the period under review were: 1. Hon. Jafaar Mohammed (Chairman) 2. Mr. Domiciano Maingi 3. Rev (Dr) Jessie Mutura 4. Mrs. Felister Kivisi 5. Mr. Daniel Mwaura Annual Report

The Audit & Risk Committee held 5 meetings during the period and were well attended.

Name Attendance 1 Hon. Jafaar Mohammed- Chair

5

2 Mr. Domiciano Maingi

5

3 Mr. Daniel K. Mwaura

4

4 Rev (Dr) Jessie Mutura

5

5 Mrs. Felister Kivisi

3

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Corporate Governance Statement The Committee routinely invites the Managing Director, and at times the other key staff to attend the meetings. The Head of Internal Audit is the Secretary to the Committee.

Staff and Remuneration Committee The Board has constituted a Staff & Remuneration Committee whose mandate includes determining the terms and conditions of service of staff and approval of recommendations for appointment and disciplinary issues of senior staff.

The members who served in the Committee were as follows: 1. Rev (Dr) Jessie Mutura ( Chairperson) 2. Eng. Julius Mwathani (Alternate Director to Mr. Patrick Nyoike, PS, MOE) 3. Hon. Jimmy Ang’wenyi 4. Domiciano Maingi 5. Eng. Joel Kiilu When appropriate, the Committee invites other members of the Board and staff to its meetings.

The Committee held 4 meetings during the period under review.

Staff & Remuneration Committee Name Attendance 1 Rev (Dr) Jessie Mutura- Chair

4

2 Hon. Jimmy Ang’wenyi

4

3 Mr. Domiciano Maingi

4

4 Eng. Julius Mwathani

2

5 Eng. Joel Kiilu

4

Adhoc Board Committee on Ethiopia-Kenya Inter-connector The Board on 30th June, 2009 constituted an Adhoc Committee on the Ethiopia- Kenya Interconnector arising from concerns raised on the impact of GIBE III dam on Lake Turkana.The mandate of the Adhoc Committee of the Board was to engage the stakeholders, monitor and address issues impacting on the project and make recommendations to the Board with a view to ensure that the project succeeds.

Members of the Committee include: 1. Ho. Jimmy Ang’wenyi- Chairman 2. Hon. Jafaar Mohammed 3. Mr. Daniel K. Mwaura The Adhoc Committee, having visited the shores of Lake Turkana on the Lodwar side the previous year also visited Loiyangalani on the Eastern shores of the Lake to engage with the local communities with a view to get first-hand information on their concerns. The Committee routinely invites management staff with relevant expertise to its meetings.

The committee held a total of 4 meetings during the year.

Ad hoc Committee Name Attendance 1 Hon. Jimmy Ang’wenyi

3

2 Mr. Daniel K. Mwaura 4 3 Hon. Jafaar Sheikh

4

Performance Contracting Committee The Performance Contracting Committee was constituted on 27th July, 2009 to spearhead the negotiations with the Government on Performance Contracting. The Company signed Performance Contracts with the Government for the period and 2010/2011 and 2011/2012 Members constituting the Committee are:1. Mr. Justus Kageenu - Chairman 2. Rev (Dr) Jessie Mutura 3. Eng. Joel Kiilu The Committee held a total of 4 meetings during the period under review.

Attendance: Performance Contracting Committee Name

Attendance

1 Mr. Justus Kageenu

4

2 Eng. Joel Kiilu

4

3 Rev (Dr). Jessie Mutura

4

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Corporate Governance Statement DIRECTORS’ REMUNERATION Details of Directors’ remuneration are set out in the report on page 64.

There were no directors’ loans at any time during the year.

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INTERNAL CONTROLS The Company has systems and processes to ensure requisite internal controls, physical security of assets and reporting of accurate and up to-date information. Whereas the Board has overall responsibility for the systems of internal control which are fully embedded in the operations of the Company, certain responsibilities, such as review of the effectiveness of the internal control systems are delegated to the Audit and Risk Committee of the Board. Internal controls comprise of methods and procedures adopted by Management to provide reasonable assurance in safeguarding assets, prevention and detection of errors, accuracy and completeness of accounting records together with reliability of financial statements.

An integrated Enterprise Resource Planning system is also under consideration to replace the interim IT software accounting system which is in place.

COMMUNICATION WITH STAKEHOLDERS The Company places a great deal of importance on open communication with its stakeholders. This is achieved through press releases, updates posted on the Company website www. ketraco.co.ke, and circulation of audited financial statements on an annual basis. Shareholders also have an opportunity to dialogue with the Board of Directors and Management during the annual general meetings. Open forums are also organised with development partners and other stakeholders to discuss progress of on-going and planned projects.

MAJOR STAKEHOLDERS In the course of doing business, the Company takes cognizance and fully engages with the following major stakeholders: Government through the Ministry of Energy and Treasury; Funding and Development partners including the World Bank; African Development Bank (AfDB); AFD; European Investment Bank (EIB); JICA; Exim Bank of China; Kreditanstalt für Wiederaufbau (KfW) and recently EXIM Bank of India. Others include the Kenya Power; Kenya Energy Generating Company Limited (KenGen); Geothermal Development Company (GDC); Rural Electrification Authority, (REA) Energy Regulatory Commission (ERC); Independent Power Producers and other electricity subsector players.

ACCOUNTABILITY AND AUDIT Directors’ responsibilities in relation to financial statements The Company law requires the Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company as at the end of the financial year and of the profit or loss of the company for that period. The Directors are responsible for ensuring that suitable accounting policies are consistently applied supported by reasonable and prudent judgements and estimates and those applicable accounting standards are followed.

JUSTUS G. KAGEENU CHAIRMAN 8th January, 2012

The Directors have responsibility for ensuring that the company keeps proper accounting records, which disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act and the State Corporations Act. They also have general responsibility for the systems of internal control for safeguarding the assets of the Company and to prevent and detect fraud and other irregularities.

Annual Report

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Report of the Directors The Directors submit their report together with the audited financial statements for the year ended 30th June 2011 which show the state of affairs of the Company.

Principal Activities The core business of the Company is to plan, design, construct, operate and maintain new high voltage (132 kV and above) electricity transmission infrastructure that will form the backbone of the National Transmission Grid, build interconnectors to facilitate regional power trade, and to wheel electricity to the Kenya Power and other end users from generators who produce power in bulk.

Results The operating results of the Company for the year under review are shown on pages 48 to 64.

Dividends The Board of Directors do not recommend payment of a dividend for the period under review.

Capital Expenditure As at 30th June, 2011, the net book value of the transmission infrastructure amounted to Kshs.6,656, million. Grants from our development partners amounted to KShs.8,293 million while exchequer funding for development expenditure was KShs.7,694 million.

Net capital work-in-progress amounted to KShs.5,666 million.

Directors The members who served in the Board of Directors during the year are shown on page 4 to 9.

Auditors The Auditor General is responsible for carrying out the statutory audit of the Company’s books of account in accordance with the State Corporations Act, Cap 446, Section 14 (3) and Section 39 of the Public Audit Act, 2003. Section 39 (1) of the Public Audit Act empowers the Auditor General to appoint other auditors to carry out audit on his behalf. Accordingly, Deloitte and Touche were appointed to carry out the audit for the year ended 30th June, 2011.

By Order of the Board

Duncan K. Macharia Company Secretary 8th January, 2012

The Kenya Electricity Transmission Company Limited

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45

Statement of Directors’ Responsibilities The Companies Act Cap 486 requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Company as at the end of the financial year and of the operating results of the Company for that year. It also requires the directors ensure the Company keeps proper accounting records which disclose with reasonable accuracy the financial position of the Company. They are also responsible for safeguarding the assets of the Company.

The directors are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and the requirements of the Kenyan Companies Act, and for such internal controls as directors determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

The directors accept responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgements and estimates, in conformity with International Financial Reporting Standards and in the manner required by the Kenyan Companies Act, Cap 486. The directors are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Company and of its operating results. The directors further accept responsibility for the maintenance of accounting records which may be relied upon in the preparation of financial statements, as well as adequate systems of internal financial control.

46

Nothing has come to the attention of the Directors to indicate that the Company will not remain a going concern for at least the next twelve months from the date of this statement.

Signed for and on behalf of the Board by:-

JUSTUS G. KAGEENU CHAIRMAN

Annual Report

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

ENG. JOEL M. KIILU Managing Director & CEO

Report of the Independent Auditors’ REPUBLIC OF KENYA

Telephone: +254 20 342330 Fax: +254 20 311482 Email: eag@kenao.go.ke Website: www.kenao.go.ke

P.O. Box 30084 - 00100 Nairobi

KENYA NATIONAL AUDIT OFFICE

REPORT OF THE AUDITOR-GENERAL ON THE KENYA ELECTRICITY TRANSMISSION COMPANY LIMITED FOR THE YEAR ENDED 30 JUNE 2011 Report on the Financial Statements The accompanying financial statements of Kenya Electricity Transmission Company Limited set out on pages 48 to 64, which comprise the statement of financial position as at 30 June 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and otherexplanatory information , have been audited on my behalf by Deloitle and Touche auditors appointed under Section 39 of the Public Audit Act 2003. The auditors have duly reported to me the results of their audit and on the basis of their report, I am satisfied that all the information and explanations which, to the best of my knowledge and belief, were necessary for the purpose of the audit were obtained.

as evaluating the overall presentation of the finan cial statements.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my opinion .

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards and for such internal control as the management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error .

Emphasis of Matter Without qualifying my opinion, I draw attention to note 3 which describes uncertainty relating to recognized income on wheeling charges, billed to Kenya Power and Lighting Company Limited (KPLC) amounting to Kshs.280,280,000 (2010-Kshs.262,154,000). The charges were based on the Energy Regulatory Commission approved transmi ssion tariff which KPLC disputes.

The management is also responsible for the submission of its financial statements to the Auditor-General in accordance with the provisions of Section 13 of the Public Audit Act, 2003.

Responsibility of the Auditor -General My responsibility is to express an independent opinion on these financial statements based on the audit and report in accordance with the provisions of Section 15 of the Public Audit Act, 2003. The audit was conducted in accordance with International Standards on Auditing . Those standards require compliance with ethical requirements and that the audit be planned and performed to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performin q, procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of, material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectivenes s of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management, as well

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Unqualified Opinion In my opinion , the financial statements present fairly , in all material respects, the financial position of the Company as at 30 June 2011 and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards and comply with the Companies Act, Cap 486 of the Laws of Kenya.

Revenue - Wheeling charge We draw attention to note 3 in the financial statements which describes the uncertainty related to amounts billed and receivable from the Kenya Power for wheeling charges. Our opinion is not qualified in respect of this matter.

Report on Other Legal and regulatory Requirements As required by the Kenya Companies Act, I report based on the audit, that; i) I have obtained all the information and explanations , which, to the best of my knowledge and belief , were necessary for the purpose of audit; ii) In my opinion proper books of account have been kept by the Company so far as appears from the examination of those books; and, iii) The Company’s statement of financial position and statement of

comprehensive income are in agreement with the books of account.

Edward R. Ouko Auditor-General Nairobi, March 6, 2012

The Kenya Electricity Transmission Company Limited

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Statement of Comprehensive Income FOR THE YEAR ENDED 30 JUNE 2011

2011 2010

Notes Sh’000 Sh’000 INCOME

4

940,315 647,190

EXPENSES

460,592

222,808

PROFIT BEFORE TAXATION

5

479,723

424,382

TAXATION CHARGE

7

PROFIT FOR THE YEAR

(57,815)

(35,711)

421,908

388,671

48

OTHER COMPREHENSIVE INCOME

-

-

421,908

388,671

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

Annual Report

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Statement of Fnancial Position for the year ended 30 june 2011

2011 2010

Notes Sh’000 Sh’000 ASSETS Non current assets Property, plant and equipment 8 Intangible assets 9 Deferred tax asset 10

Current assets Receivables and prepayments 11

12,304,191 5,192,448 18,154 4,082 - 12,326,427 5,192,448 617,783

268,945

Cash and bank balances

6,042,043

3,299,408

6,659,826 3,568,353

18,986,253 8,760,801 Total assets EQUITY AND LIABILITIES Capital and reserves Share capital 12 2,000 2,000 Exchequer funding 13 7,694,407 3,772,980 Reserves 790,579 388,671

8,486,986 4,163,651 Non-current liabilities Deferred grant income 14 8,292,836 4,050,354

Current liabilities Deferred grant income 14 111,667 49,147 Payable and accruals 15 2,065,990 479,489 Dividend payable 20,000 Corporate tax payable 7 8,774 18,160

49

2,206,431

546,796

18,986,253 8,760,801 Total equity and liabilities

The financial statements on pages 42 to 58 were approved by the board of directors on 8th January, 2012 and were signed on its behalf by:

JUSTUS G. KAGEENU Chairman

The Kenya Electricity Transmission Company Limited

ENG. JOEL M. KIILU MD & CEO

Annual Report

& Financial statements

Statement of Changes in Equity FOR THE YEAR ENDED 30 JUNE 2011

As at beginning of period Issue of shares

50

Share Exchequer Revenue Total Capital funding reserve equity Kshs’000 Kshs’000 Kshs’000 Kshs’000 2,000

-

-

2,000

Exchequer funding for development expenditure

- 3,772,980

Surplus for the year

-

-

388,671

388,671

At 30 June 2010

2,000

3,772,980

388,671

4,163,651

At 1 July 2010

2,000

3,772,980

388,671

4,163,651

Exchequer funding for development expenditure

-

3,921,427

-

3,921,427

Surplus for the year

-

-

421,908

421,908

Dividend – 2010

-

-

(20,000)

(20,000)

At 30 June 2011

2,000

7,694,407

790,579

8,486,986

Annual Report

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

- 3,772,980

Statement of Cash Flows

for the year ended 30 june 2011

2011 2010

Notes Sh’000 Sh’000 CASH FLOWS FROM OPERATING ACTIVITIES Cash generated from operations Taxation paid

16(a) 7

Net cash generated from/(used in) operating activities

1,753,716 (71,238)

685,156 (17,551)

1,682,433

667,605

(49,117) (7,146,637) (19,620)

(1,853,029) (3,389,649) -

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment Work in progress (project costs) Purchase of intangible assets

8 8 9

Net cash used in investing activities (7,215,374) (5,242,678)

CASH FLOWS FROM FINANCING ACTIVITIES Share capital Exchequer funding (capital) Grant income Net cash generated from financing activities

12 13 16(b)

- 3,921,427 4,354,149

2,000 3,772,980 4,099,501

8,275,576

7,872,481

INCREASE IN CASH AND CASH EQUIVALENTS

2,742,635 3,299,408

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 3,299,408 CASH AND CASH EQUIVALENTS AT END OF YEAR

The Kenya Electricity Transmission Company Limited

-

16(c) 6,042,043 3,299,408

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& Financial statements

51

Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

1. ACCOUNTING POLICIES Statement of compliance with International Financial Reporting Framework (IFRS) The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS).

For the Kenyan companies Act reporting purposes, in these financial statements the balance sheet is represented by/ is equivalent to the statement of financial position and the profit and loss account is presented in the statement of comprehensive income.

new or revised standards and interpretations will have no material impact on the financial statements of the company in future periods. (c) Early adoption of standards The company did not early-adopt any new or amended standards in 2011.

Adoption of new and revised International Financial Reporting Standards (IFRSs) and interpretations (IFRIC)

52

Basis of preparation The financial statements are prepared under the historical cost convention as modified to include the revaluation of certain assets.The principal accounting policies adopted in the preparation of these financial statements remain unchanged from the previous year and are set out below.

a) New standards and amendments to published standards effective for the year ended 30 June 2011 The following new standards issued by the International Accounting Standards Board are effective in the current period. These have been adopted in the financial statements of the company in the year.

Revenue recognition The main source of revenue is wheeling charge for transmitting electricity from the producer (source) to a substation to facilitate distribution to the final consumer. The wheeling charge is measured based on kilowatt hours (KWH) of power transmitted and the revenue is recognised on accrual basis.

Amendments to IAS 7 Statement of Cash Flows (as part of Improvements to IFRSs issued in 2009)

The amendments to IAS 7 specify that only expenditures that result in a recognised asset in the statement of financial position can be classified as investing activities in the statement of cash flows.The statement of cash flows on page 10 complies with this amendment.

Other new standards and interpretations effective in the period under review have no effect on the company’s financial statements. (b) New standards and amendments to published standards and interpretations in issue but not yet effective in the year ended 30 June 2011 At the date of authorization of these financial statements, there were a number of revised or amended standards and interpretations that were in issue but not yet effective. The directors are currently assessing the impact and expected timing of adoption of these amendments on the company’s results and financial position. The directors anticipate that the Annual Report

Revenue from rendering the service is recognised when all the following conditions are satisfied:

• the amount of revenue can be measured reliably; • it is probable that the economic benefits associated with the transaction will flow to the entity; • the stage of completion of the transaction at the end of the reporting period can be measured reliably; and • the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

Interest income is recognised on a time proportion basis using the effective interest method.

Exchequer funding This represents amounts received from Treasury for both recurrent and development expenditure. Amounts received from the exchequer are recognised on cash accounting basis, that is, as and when received.

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Notes to the Financial Statements for the year ended 30 june 2011

is calculated on straight line method to write-off the cost or to revalued amount of property, plant and equipment in equal annual instalments over their estimated useful lives.

Depreciation is calculated from the date of purchase of an asset.

1. ACCOUNTING POLICIES (Continued) Government grants are recognised where there is reasonable assurance that the grant will be received and all attaching conditions will be complied with. (a) Revenue grant Grants received to compensate expenses or for the purpose of giving immediate support to the company with no future related costs are recognised in profit or loss in the year of receipt and/or commencement of the project for which they were intended. (b) Capital grant Government grants related to assets are presented in the statement of financial position by setting up the grant as deferred income. Government grants whose primary condition is that the company should purchase, construct or otherwise acquire non-current assets are recognised as deferred revenue in the statement of financial position and transferred to profit and loss on a systematic and rational basis over the useful lives of the related assets.

Taxation Current taxation is provided on the basis of the results for the year as shown in the financial statements, adjusted in accordance with the tax legislation.

Deferred tax is provided using the liability method for all temporary differences arising between the tax base of the assets and liabilities and their carrying values for financial reporting purposes. Currently enacted tax rates are used to determine deferred income tax. The principal temporary differences arise from depreciation on property, plant and equipment.

Deferred tax assets are recognised for tax losses carried forward only to the extent that realisation of the related tax benefit can be foreseen.

Property, plant and equipment Property, plant and equipment are stated as cost less accumulated depreciation and any accumulated impairness losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation

The annual rates used are: Capital work in progress Nil

Transmission line

2.5%

Motor vehicles

25%

Furniture, fittings and office equipment

12.5%

Computers & accessories

33.3%

The annual depreciation on the revaluation surplus element of property, plant and equipment is transferred from the revaluation surplus to retained earnings.

Gains and issues on disposal of property, plant and equipment are determined by reference to their carrying amount and are included in the statement of comprehensive income. On disposal of revalued assets, amounts in the revaluation surplus relating to the asset are transferred to retained earnings.

The carrying values of property, plant and equipment are reviewed annually and adjusted for impairment where it is considered necessary.

Intangible assets Costs incurred on computer software are initially accounted for at cost as intangible assets and subsequently at cost less any accumulated amortisation and accumulated impairment losses.

Amortisation is calculated on the straight line basis over the estimated useful lives not exceeding a period of 3 years.

Accounts receivables Accounts receivables are carried at anticipated realisable value.

Trade payables Liabilities for trade and other amounts payable are carried at costs which is the fair value of the consideration to be paid in future for goods and services received, whether billed or not.

The Kenya Electricity Transmission Company Limited

Annual Report

& Financial statements

53

Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

1. ACCOUNTING POLICIES (Continued) Employee benefits costs (i) Retirement benefit obligations The company operates a defined contribution retirement, benefit scheme for its permanent employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. The scheme is funded by contributions from both the company and employees. The company and all its employees also contribute to the National Social Security Fund, which is a defined contribution scheme.

54

In addition the company pays gratuity to top management on contract. The gratuity is paid at the end of the contract period at the rate of 15% and 31% of the total basic salary over the contract period. An accrual is made for gratuity based on the rate of 15% and 31% pa. (ii) Other entitlements The estimated monetary liability for employees accrued leave entitlement at the balance sheet date is recognised as an expense accrual.

Foreign currencies The financial statements are presented in Kenya Shillings, which is the company’s functional and reporting currency. In preparing the financial statements, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.

Comparatives Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year. The comparative amounts cover a period of 18 months as the year of inception.

Annual Report

2. CRITICAL JUDGEMENTS IN APPLYING THE ENTITY’S ACCOUNTING POLICIES In the process of applying the entity’s accounting policies, management has made estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances Impairment losses At each reporting date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash generating unit to which the asset belongs.

Property and Equipment Critical estimates are made by the directors in determining depreciation rates for equipment. The rates used are set out in Note 1 above.

3. WHEELING CHARGES RECEIVABLE FROM KPLC The company has recognised income on wheeling charges and billed The Kenya Power (KPLC) Sh 280,280,000 (2010 Sh - 262,154,000) based on Energy Regulatory Commission (ERC) approved transmission tariff of Kshs 0.77 per Kwh multiplied by the units generated and wheeled through the transmission lines owned by KETRACO. However, KPLC proposes to use the embedded cost model that incorporates the length of the transmission line in the computation of wheeling charge payable to KETRACO and has only committed to pay Sh 167,900,400 out of the outstanding amount of Sh 542,434,000 included in receivables. The agreed units of electricity transmitted during the period were 364,000,000 Kwh ( 2010- 340,460,000 Kwh). Management has initiated discussions with KPLC and the Government for the balance of Sh 374,533,600 as at 30 June 2011 to be paid

by KPLC.

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Notes to the Financial Statements for the year ended 30 june 2011

4. INCOME

2011 Sh’000

2010 Sh’000

Recurrent Exchequer Funding

400,000

266,000

Wheeling charge

280,280

262,154

Interest Income

209,505

117,205

49,147

-

1,383

1,831

Deferred grant income amortisation Other Income

940,315 647,190

Interest income relates to interest earned on the bank account balances and it is subject to 15% withholding tax. Other income represents income received from sale of tender documents.

5 PROFIT BEFORE TAXATION The profit before taxation is arrived at after charging/(crediting)

2011 Sh’000

Staff costs (note 6) 233,895

70,297

Directors’ emoluments - fees

2010 Sh’000

2,016

1,344

25,396

14,710

Depreciation

84,011

50,230

Amortisation

1,466

-

1,500

500

Salaries and Wages

165,938

41,638

Other Staff Costs

52,755

23,022

Leave pay provision

6,626

-

Pension Contribution

5,401

1,637

2,976

3,841

199

159

- other

Auditors’ remuneration – current year

6 STAFF EXPENSES

Gratuity provisions

NSSF and NHIF contributions

Number of staff

233,895 107

70,297 51

Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

7. TAXATION

2011 2010

Sh’000

Sh’000

(a) Taxation charge

Current taxation based on adjusted profit at 30% current year charge 59,738 35,711 Current tax penalty 3,873 Prior year overcharge - current tax (5,887) Prior year tax penalty 4,173

61,897 35,711

56

Deferred taxation (Note 10) - current year

- prior year provision

(2,923) (1,159)

-

(4,082)

-

57,815 35,711 (b) Reconciliation of taxation charge to expected

taxation based on accounting profit before taxation

Accounting profit before taxation 479,723 424,382

Taxation at the applicable rate 30% 143,917 127,315 Tax effect of non-deductible expenses 91,038 57,160 Tax effect of revenue not taxable (178,140) (148,764) Tax penalty - current year 3,873

- prior year 4,173 Prior year overcharge – current tax (5,887) Prior year deferred tax provision (1,159)

57,815 35,711 c) Taxation payable

Balance brought forward 18,160 Charge for the year 61,897 Paid during the year (71,283)

8,774

Annual Report

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

35,711 (17,551) 18,160

Notes to the Financial Statements for the year ended 30 june 2011

8. PROPERTY, PLANT AND EQUIPMENT

COST

Furniture, Sh’000

fittings Capital Sh’000 lines Vehicles & office Accessories work in Sh’000 Transmission motor Furniture computer progress Total Sh’000 Sh’000 Sh’000 Sh’000 Sh’000 Sh’000

At 1 July 2009 Additions

1,785,561

19,023

48,148

297

3,389,649

5,242,678

At 30 June 2010

1,785,561

19,023

48,148

297

3,389,649

5,242,678

At 1 July 2010

1,785,561

19,023

48,148

297

3,389,649

5,242,678

18,700

21,196

9,221

7,146,636

7,195,754

Additions

-

Transfers from WIP

4,870,067

-

-

-

(4,870,067)

-

At 30 June 2011

6,655,628

37,723

69,344

9,518

5,666,218

12,438,432

DEPRECIATION At 1 July 2009

-

-

-

-

Charge for the year

44,639

3,328

2,234

29

-

50,230

At 31 June 2010

44,639

3,328

2,234

29

-

50,230

At 1 July 2010

44,639

3,328

2,234

29

-

50,230

Charge for the year

64,987

8,890

7,512

2,622

-

84,011

109,626

12,218

9,746

2,651

At 30 June 2011

-

-

134,241

NET BOOK VALUE At 30 June 2011

6,546,002

25,505

59,598

6,867

5,666,218

12,304,191

At 30 June 2010

1,740,922

15,695

45,914

268

3,389,649

5,192,448

At the date of incorporation various transmission lines were transferred from Kenya Power to KETRACO. However as at the date of reporting the legal documentation in relation to the transfer of these assets amounting to sh Sh 6,655,628,000 had not been completed.

The Kenya Electricity Transmission Company Limited

Annual Report

& Financial statements

57

Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

9. INTANGIBLE ASSETS - Computer software

2011 2010

Sh ‘000’ Sh ‘000’ COST At beginning of the period Additions At 30 June

58

- 19,620 19,620 -

AMORTISATION At 1 July Charge for the year At 30 June

- 1,466 1,466

-

NET BOOK VALUE At 30 June

18,154

-

10. DEFERRED TAX ASSET The net deferred tax asset is attributable to the following items: Deferred tax asset: Excess depreciation over capital allowances 49 Leave pay provision 1,988 Staff gratuity 2,045 Deferred tax asset not recognised -

4,082 Movement in deferred tax account At beginning of the year Profit or loss credit (note 6) 2,923 Prior year under provision 1,159 At end of the year 4,082

11. RECEIVABLES AND PREPAYMENTS Wheeling charge from KPLC 542,434 Other receivables 65,079 Medical and insurance prepayments 6,891 Rent deposit 3,379

617,783

Annual Report

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

7 1,152 (1,159) - -

262,154 4,241 2,550 268,945

Notes to the Financial Statements for the year ended 30 june 2011

12. SHARE CAPITAL

2011 2010

Sh ‘000’ Sh ‘000’ Authorised, issued and fully paid 20,000 shares of Sh 100 each 2,000 2,000 13. EXCHEQUER FUNDING At beginning of the period Received

3,772,980 3,921,427 3,772,980

At end of the period

7,694,407

3,772,980

This relates to receipts from the exchequer for development (capital) expenditure. The amount has been committed for construction of various transmission lines.

14. DEFERRED GRANT INCOME These relate to grants from the Government of Kenya used for the construction of transmission lines that are being amortised over the useful lives of the respective assets.

Amounts will be amortised as below : Grant income to be amortised within one year 111,667 49,147 Grant income to be amortised after one year 8,292,836 4,050,354 At the end of the period 8,404,503 4,099,501

15. TRADE AND OTHER PAYABLES Trade payables 471,541 441,052 Accruals 1,593,532 38,437 Payroll accrual 918

2,065,990 479,489 16. NOTES TO THE CASH FLOW STATEMENT (a) Reconciliation of profit before tax to cash generated from operations:

Profit before tax

Adjustments for: Depreciation Amortisation Deferred grant income amortised

84,011 1,466 (49,147)

516,053

474,612

(348,838) 1,586,501 1,753,716

(268,945) 479,489 685,156

Profit before working capital changes

Changes in working capital: Increase in trade and other receivables Increase in trade and other payables Cash generated from operations

The Kenya Electricity Transmission Company Limited

479,723

Annual Report

& Financial statements

424,382 50,230 -

59

Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

16. NOTES TO THE CASH FLOW STATEMENT (continued ) (b) Analysis of changes in deferred grant 2011 2010

Sh ‘000’ Sh ‘000’ income:

At beginning of period 4,099,501 Received 4,354,149 4,099,501

Amortised (note 4) (49,147)

At end of period (note 14) 8,404,503 4,099,501 c) Analysis of balance of cash and cash equivalents Cash and bank balances

6,042,043

3,299,408

2011 Shs ‘000’

2010 Shs ‘000’

47,308

28,147

27,412

16,054

17. KEY MANAGEMENT COMPENSATION

60

The remuneration of directors and other members of key management during the year was as follows: Salaries and other benefits Directors’ fees and emoluments (included in key Management compensation above)

18. FUTURE OPERATING LEASE RENTAL PAYABLE Amounts payable by the company under various operating lease agreements negotiated with landlords as at the year end were as follows:

Within one year 10,920 10,302 In the second to fifth years inclusive 36,850 47,770

47,770 58,072

19. FINANCIAL RISK MANAGEMENT The company’s activities expose it to a variety of financial risks including credit and liquidity risks and effects of changes in foreign currency. The company’s overall risk management programme focuses on unpredictability of changes in the business environment and seeks to minimise the potential adverse effect of such risks on its performance by setting acceptable levels of risk.The company does not hedge any risks and has in place policies to ensure that credit is only extended to customers with an established credit history.

The company’s financial risk management objectives and policies are detailed below: (i) Credit risk Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the company.

The company’s credit risk is primarily attributable to its receivables. Management assesses the credit quality of each customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external assessment in accordance with limits set by the directors. The amounts presented in the statement of financial position are net of Annual Report

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Notes to the Financial Statements for the year ended 30 june 2011

allowances for doubtful receivables, estimated by the company’s management based on prior experience and their assessment of the current economic environment.

The amount that best represents the company’s maximum exposure to credit risk is made up as follows:

Fully

performing Past due Impaired Sh ‘000’ Sh ‘000’ Sh ‘000’ At 30 June 2011 Trade receivables 542,434 - - Bank balances 6,041,743 - At 30 June 2010 Trade receivables 262,154

Bank balances 3,299,308

-

-

-

-

The customers under the fully performing category are paying their debts as they continue trading. The credit risk associated with these receivables is minimal and the allowance for uncollectible amounts that the company has recognised in the financial statements is considered adequate to cover any potentially irrecoverable amounts.

The company has significant concentration of credit risk on amounts due from KPLC and the risk of default is low.

The board of directors sets the company’s credit policies and objectives and lays down parameters within which the various aspects of credit risk management are operated. (ii) Liquidity risk management Ultimate responsibility for liquidity risk management rests with the company directors, who have built an appropriate liquidity risk management framework for the management of the company’s short, medium and long-term funding and liquidity management requirements. The company manages liquidity risk through continuous monitoring of forecasts and actual cash flows.

The table below represents cash flows payable by the company under non-derivative financial liabilities by their remaining contractual maturities at the reporting date. The amounts disclosed in the table are the contractual undiscounted cash flows, whereas the company manages the inherent liquidity risk based on expected undiscounted cash inflows. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant.

The Kenya Electricity Transmission Company Limited

Annual Report

& Financial statements

61

Notes to the Financial Statements FOR THE YEAR ENDED 30 JUNE 2011

19. FINANCIAL RISK MANAGEMENT (continued)

Less than Between 1- over 5

1 month 3 months months Total

Sh ‘000’ Sh ‘000’ Sh ‘000’ Sh ‘000’ At 30 June 2011 Trade payables 471,541 - - 471,541 At 30 June 2010 Trade payables 441,052 - -

441,052

(iii) Market risk The company manages foreign exchange risk arising from future commercial transactions and recognised assets and liabilities by projecting for expected sales proceeds and matching the same with expected payments.

At 30 June 2011, if the Kenya Shilling had strengthened/weakened by 10% against the US Dollar with all other variables held constant, the impact on profit before tax for the year would have been Sh nil (2010- nil), mainly as a result of US Dollar trade receivables and US Dollar bank balances. 10% is the sensitivity rate used when reporting foreign currency risk internally and represents management’s assessment of the reasonably possible change in exchange rates.

62

(iv) Significant accounting policies Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 1 to the financial statements.

20. CONTINGENT LIABILITIES

2011 2010 Sh ‘000’ Sh ‘000’ Contingent liabilities

3,000

-

The amount relates to a pending legal suit against the company. The directors, however, do not anticipate that any significant liability will accrue from this pending suit.

21. CAPITAL EXPENDITURE COMMITMENTS

2011 2010 Sh ‘000’ Sh ‘000’ Authorised and contracted for 13,616,000 5,000,956 Authorised but not contracted for 3,696,000 3,696,000

17,312,000 8,696,956 22. INCORPORATION The company is incorporated in Kenya under the Companies Act. 23 CURRENCY These financial statements are presented in Kenya shillings (Sh).

Annual Report

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

Detailed Statement of Comprehensive Income for the year ended 30 june 2011

2011 2010

Sh’000 Sh’000

REVENUE 940,315 647,190

ADMINISTRATION EXPENSES - Appendix II

460,592

222,808

PROFIT BEFORE TAXATION

479,723 424,382

TAXATION CHARGE

(57,815) (35,711)

PROFIT FOR THE YEAR

421,908

388,671

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

The Kenya Electricity Transmission Company Limited

421,908

Annual Report

& Financial statements

388,671

63

Detailed Statement of Comprehensive Income FOR THE YEAR ENDED 30 JUNE 2011

ADMINISTRATION EXPENSES

2011 2010 Sh’000 Sh’000

Salaries and wages

164,249

70,297

Depreciation

84,011

50,230

Maintenance cost for Transmission Lines

50,213

25,000

Staff Training

28,015

11,759

1,600

1,344

25,812

14,710

14,371

9,322

Staff Medical

9,887

3,939

Staff Welfare

14,439

1,236

Professional fees

8,973

496

Office expenses

8,422

3,650

Corporate Communication

6,631

6,060

Postage and Telephone and Internet Services

6,674

1,898

Leave pay provision

6,626

-

Motor Vehicle Expenses

6,091

930

Printing and stationery

6,165

2,464

319

1,359

1,466

-

12,199

16,255

1,009

171

Security

626

405

Bank charges

538

78

Board Fees - fees

- other

Rent

64

Membership and Subscription Amortization Staff traveling and accommodation Electricity

Audit Fee Insurances and Medical

1,999 257

500 705

460,592 222,808

Annual Report

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited

KETRACO Projects Power Evacuation, Regional Inter - Connectors, Access & Strengthening Projects Project Name Scope Estimated Completion Date

Mombasa - Nairobi Line

475km, 220/400kV & 2 Sub-stations at Rabai and Embakasi

Loiyangalani – Suswa Line

430km, 400kV line & 2 Sub-stations Dec 2013

Mar 2013

Rabai - Malindi - Garsen - Lamu Line

320km, 220kV Line & 3 Sub-stations Dec 2012

Olkaria - Suswa

25km, 220kV Line & 2 Sub-stations Mar 2014

Sangoro - Sondu

5km , 132kV Line & 1 Sub-station

Olkaria - Lessos - Kisumu Line

300 km, 220kV Line & 1 Sub-station Dec 2014

Kindaruma - Mwingi - Garissa Line

250km, 132kV Line & 2 Sub-stations Dec 2013

Lessos - Tororo Line

127km Line, 220 kV & 1 Sub-station Dec 2013

Ethiopia - Kenya

686km, 500kV Line & 2 Converter Sub-stations Dec 2014

Zambia- Tanzania- Kenya

100km , 400kV Line Dec 2014

Kilimambogo - Thika - Githambo Line

57km, 132kV Line & 2 sub-stations Mar 2012

Mumias - Rangala Line

34km ,132 kV Line & 2 Sub-stations Mar 2012

Nairobi Ring

100km, 400kV Line & 5 Sub-Stations Dec 2013

Feb 2012

Eldoret - Kitale Line

60km, 132kV Line and 1Sub-station Dec 2013

Kisii - Awendo Line

44km 132kV Line & 1Sub-station Dec 2013

Thika - Kiganjo Line

20km, 132 kV & 1Sub-station

Mar 2012

Nanyuki - Nyahururu Line

79km ,132kV Line & 1 Sub-stations

June 2014

Lessos - Kabarnet Line

65km 132kV Line & 1 Sub-station Dec 2013

Olkaria - Narok Line

68km 132kV Line & 1 Sub-station

June 2014

Bomet - Sotik Line

33km, 132kV Line & 1Sub-station

June 2014

Mwingi - Kitui – Wote- Sultan Hamud - Line

153 km 132kV Line & 4 Sub-stations

June 2014

Ishiara - Kieni Line

33km, 132kV Line & 1Sub-station

June 2014

Nanyuki-Isiolo-Meru Line

96 km, 132kV Line & 1 Sub-station

Apr 2014

Key Red - Power Evacuation Projects Black - Regional Interconnectors Green - Access & Strengthening Projects All the above are Vision 2030 Flagship Projects.

65

66

2nd Floor, Capitol Hill Square, Chyulu Rd, Upper Hill P.O. Box 34942 - 00100 Nairobi, Kenya.

Phone: (+254) 20 4956000, Mobile: (+254) 719 - 018000, (+254) 732 - 28000 Email: info@ketraco.co.ke www.ketraco.co.ke

Annual Report

& F i n an ci al statemen ts The Kenya Electricity Transmission Company Limited