The Need for Enhanced Environmental Auditing of Geothermal Projects. a Case Study of Kenya Electricity Generating Company Ltd (KenGen)

Abstract

Increasing legislative, financial and community awareness of environmental issues have led to the rethinking of the role and responsibilities of government and private sector in environmental management in Kenya. Consequently, both private and public organizations are forced to be accountable for their actions. In order to guard against environmental litigation and liabilities, organizations are not only adopting voluntary environmental management systems like ISO 14001:2004 but doing regular environmental audits. The implementation of voluntary standards like ISO is also included in the government performance contracts of all government agencies. Financiers/lending institutions are also insisting on environmental audits to avoid the risk of investing in projects with potential environmental liabilities and public rejection. In order to increase capacity in power generation, KenGen has opted for geothermal capacity expansion. These geothermal projects will be implemented in a setting of heightened environmental awareness and legislation. Moreover, environmental issues of geothermal development are not obvious to the environmental regulators and elites outside geothermal field. The paper discusses the need for enhanced environmental responsibility and audits in the implementation of KenGen geothermal projects. The paper also highlights the company experience in auditing and its role in supporting/influencing the regulatory environment in which the planned geothermal projects will be implemented.