High Court Of Kenya Suspends $736 Million Power Line Deal Between KETRACO And Adani

High Court Of Kenya Suspends $736 Million Power Line Deal Between KETRACO And Adani

The energy ministry said it would help address persistent power blackouts and support economic growth

The High Court of Kenya has suspended a $736 million public-private partnership deal signed recently between the state-owned Kenya Electrical Transmission Company (KETRACO) and India's Adani Energy Solutions to build and operate power infrastructure including transmission lines.

The bench clarified that the government could not proceed with the 30-year agreement with Adani Energy until the court decided on a case by the Law Society of Kenya (LSK) challenging the deal.

The law society had argued that the power deal was "a constitutional sham" and was "tainted with secrecy."

The LSK alleged that KETRACO and Adani Energy did not hold public participation in the project, a requirement under Kenya's Public-Private Partnerships Act, 2021.

Earlier, the energy ministry said it ran a competitive bidding process.

Recently, the Adani Group, founded by Indian billionaire Gautam Adani, sparked anger in Kenya over another proposed public-private partnership project to lease the country's main airport for 30 years in exchange for its expansion.

The LSK and the Kenya Human Rights Commission challenged the proposed airport deal in court. They claimed that it was unaffordable, threatened job losses, and did not offer value for money.