The African Development Bank (AfDB) announced on Tuesday, May 19, the temporary exclusion of Esiko Kenya Enterprises Limited, as well as Chen Chao and Huang You, for fraudulent practices related to an electrification project in the Republic of Kenya.
The Kenyan civil and electrical engineering company is suspended for a period of nine months, while the two Chinese nationals are excluded for twelve months. This decision follows an investigation conducted by the AfDB’s Integrity and Anti-Corruption Office.
Irregularities identified in an electrification market
According to the investigation findings, the parties involved engaged in fraudulent practices in a market for the design, supply, and installation of low-voltage single-phase line extensions and service cables. These works were part of Phase II of the last-mile connectivity project in Kenya.
Financed by the AfDB group, this program aims to support the Kenyan government’s initiative for expanded access to electricity nationwide, especially for the most disadvantaged populations. The project involves extending the electricity network through a network of transformers covering all 47 counties in the country.
A signal on the governance of funded projects
Throughout the duration of the exclusion, Esiko Kenya Enterprises Limited, Chen Chao, Huang You, and any entity under their control will not be able to participate in any activities funded by the AfDB group. Their reintegration will be subject to the expiration of sanctions and the satisfactory implementation of corrective measures required in terms of integrity.
Through this decision, the AfDB reaffirms the importance of control, compliance, and accountability mechanisms in the execution of projects it finances. The institution thus emphasizes the central role of its Integrity and Anti-Corruption Office, responsible for preventing, deterring, and investigating alleged cases of fraud, corruption, and other prohibited practices that could affect the effectiveness and credibility of its interventions.
