One of the four corner points on KenGen's Olkaria licence was recorded as 21,000. It should read 192,000. On paper, a rectangular geothermal field of 204 square kilometres became a triangle.
That is the finding of Kenya's Auditor-General, as reported by Business Daily Africa on 14 October 2026. Some of the wells and steam pipes KenGen built now sit outside the area its licence legally covers. KenGen is listed on the Nairobi Securities Exchange, so who holds the rights to that ground is a question for its shareholders too.
What the auditor found
Facts. KenGen applied for the geothermal licence on 7 February 2000, according to the audit. The Ministry of Energy and Petroleum issued it on 19 September 2008. The licence fixes the field by four corners, marked A, B, C and D; one coordinate was recorded as 21,000 instead of 192,000. The error left parts of the geothermal domes, and some of KenGen's wells and steam infrastructure, outside the licensed area.
Facts. The ministry acknowledged the error in 2017. In 2018 part of the affected area was excised from KenGen's licence and allocated to another geothermal developer. At the time of the audit in August 2026 the error had not been corrected, "despite several requests to the Ministry by [KenGen] management", the audit says. It warns that the company "is exposed to the risk of loss of rights over strategic and investments made on geothermal infrastructure."
| Date | Event (as reported) |
|---|---|
| 7 February 2000 | KenGen applies for the licence |
| 19 September 2008 | Licence issued; one coordinate recorded as 21,000, not 192,000 |
| 2017 | Ministry acknowledges the error |
| 2018 | Part of the affected area excised and given to another developer |
| August 2026 | Error still uncorrected at the time of the audit |
Source: Auditor-General findings as reported by Business Daily Africa and The Rio Times, 14 October 2026.
Facts. Business Daily reports that KenGen's wider Olkaria portfolio accounted for 88.2% of its geothermal base at the end of June 2026. Neither report says any plant has stopped or that output has fallen.
What it means
For shareholders (Analysis): a well is only as secure as the licence over the ground beneath it. Where the paper boundary and the physical wells disagree, part of KenGen's investment rests on a correction the ministry acknowledged it owed in 2017, about nine years before the audit.
For the grid (Analysis): the audit describes a risk to rights, not a stoppage. The number that would size that risk is how much capacity depends on the wells outside the boundary, and it has not been published.
For the fix (Analysis): the 2018 excision came after the ministry had acknowledged the error. Because a second licence holder now has rights over part of the area, a corrected map may no longer be a purely clerical matter.
What to watch
- Whether the Ministry of Energy and Petroleum issues a corrected licence, and on what date.
- Whether KenGen addresses the finding in a disclosure on the Nairobi Securities Exchange or in its annual report.
- Whether Parliament's Public Investments Committee takes up the audit query.
Information, not advice.