Kenya Electricity Generating Company (KenGen) faces the risk of losing more than Sh363 million invested in Stima Investment Co-operative Society after the savings and investment society failed to refund money deposited by the power producer’s charitable foundation.
The disputed amount originated from Sh100 million that KenGen Foundation invested with Stima between 2015 and 2016 through fixed-deposit arrangements promising an annual return of 16 per cent. According to KenGen’s latest annual report, the investment was made using funds from the foundation’s endowment during the tenure of former KenGen Chief Executive Albert Mugo.
The foundation’s management reported that the original investment, together with accumulated interest, had grown to Sh363.03 million by September 30, 2024. However, efforts to recover the money proved unsuccessful, prompting the foundation to file a recovery case against Stima Investment Co-operative Society on November 24, 2024.
Stima acknowledged owing only Sh90 million and proposed settling the admitted amount by transferring 19 one-bedroom residential units in Ruiru, Kiambu County, to KenGen Foundation. The proposal was rejected, leaving the dispute to be determined by the High Court.
The Auditor General, in a report dated September 4, 2026, raised concerns over how KenGen handled the investment, noting that the company had not provided evidence of approval, an investment policy or due diligence before placing the funds with the society. In the circumstances, recoverability of the investment remains doubtful
The promised 16 per cent return was also significantly higher than the average interest rate of 10.85 per cent offered by 364-day Treasury bills between 2015 and 2016.
Stima was among several property investment firms that attracted investors with double-digit returns before experiencing difficulties repaying their obligations as money became tied up in underperforming real estate projects. Other firms included SIC Investment Co-operative and Cytonn.
Despite the recovery dispute, KenGen has continued supporting its charitable arm. The company donated Sh100 million to KenGen Foundation in the financial year ending June 2026, up from Sh61.6 million in the previous financial year.
Established in 2012 as a public charitable trust, KenGen Foundation supports programmes in education, environmental conservation, community infrastructure and social development. The ongoing court dispute leaves the recovery of the full Sh363.03 million uncertain, exposing KenGen to a potentially significant financial loss.