The Geothermal Development Company (GDC) faces fresh scrutiny over Sh15.93 billion worth of drilling rigs that are either idle or non-functional. The latest Auditor-General report for the year ended June 2025 highlights the underutilised assets.
Three of the seven rigs have remained out of operation for the past five years. Management cited vandalism of cables, obsolete parts and breakdown of service components as reasons for the downtime.
GDC described the rigs as some of the most powerful in Africa with capacity to drill up to seven kilometres. Auditors however questioned value for money given the lack of a clear repair plan and insufficient staff to operate the full fleet.
The company also failed to insure the multi-billion shilling equipment. GDC said it is undertaking a risk survey before procuring cover.
Additional inefficiencies emerged in supporting equipment. Eight of 12 bulk cementing trucks bought in 2016 at Sh138.9 million have never been used and remain non-functional.
A drilling monitoring software project contracted in 2014 at Sh344.5 million also stalled. Auditors found no evidence of installation despite an advance payment of Sh137.8 million.
GDC told the auditor the matter is under investigation by the Ethics and Anti-Corruption Commission. Efforts to obtain updates have not yielded results.
The findings add to a pattern of underutilised assets at the state firm tasked with geothermal exploration. GDC posted a pre-tax loss of Sh1.46 billion in the year under review.
The company was established in 2008 to develop steam fields and sell to KenGen and private investors. Its challenges come as Kenya pushes to expand geothermal power generation.
Comments (0)
Leave a Comment
No comments yet. Be the first to share your thoughts!