Nairobi, Feb. 3 -- The Rural Electrification and Renewable Energy Corporation (REREC) spent Sh1.3 billion, which the Treasury diverted from the Petroleum Development Fund, on 245 rural electrification projects.

Auditor-General Nancy Gathungu has flagged the irregular usage of the Petroleum Development Fund by REREC, saying the money is meant for the development of common facilities for the distribution or testing of oil products and matters relating to the development of the oil industry.

She said utilisation of the Petroleum Development Fund was contrary to Section 4(4) of the Petroleum Development Fund Act 2012, and the State agency breached the law.

The Treasury last year diverted Sh2.074 billion from the Petroleum Development Fund ...