High Court stops KETRACO, Adani deal

By Peter Ochieng

The High Court in Nairobi has slammed brakes on the much-publicised deal between the Kenya Electricity Transmission Company (KETRACO) and Adani Energy Solutions.

The two institutions signed a deal worth Sh95.68 billion on October 11, whereby the Indian company was tasked with developing, financing, constructing, and operating critical transmission lines and substations across the country.

However, the Law Society of Kenya (LSK) swiftly moved to court seeking conservatory orders pending hearing and determination of the case. According to LSK, the agreement between the two entities was a constitutional sham tainted with secrecy and lacking the principles of integrity.

Justice Bahati Mwamuye in his ruling temporarily halted the deal, stating that LSK's petition had met the legal threshold for the court to grant conservatory orders.

"Pending the inter partes hearing and determination of the Application dated 23/10(2024, a conservatory order be and is hereby issued suspending the implementation of any Project Agreement between the 1st, 3rd, 4th, 5th, 6th, and 7th Respondents jointly and severally and the 2nd Respondent and/or any of its related companies and entities with regard to development of transmission lines, substations, or any other electrical power infrastructure," he ruled.

"Pending the inter partes hearing and determination of the application, a conservatory order be and is hereby issued restraining the respondents from entering into any new agreement furthering any existing agreement concerning the second respondent and or any of its related companies and entities with regards to development of transmission lines, substations or any other electrical power infrastructure."

November 11, 2024 was set as the mention date.

The ruling comes a day after President William Ruto defended the deal, arguing that if implemented, it would greatly benefit Kenyans.

Speaking during the groundbreaking for the establishment of a 35MW power plant in Menengai, Nakuru County, he said Kenya is leveraging on Public-private Partnerships (PPP) to unlock its geothermal potential.

"The Adani group is investing Sh95 billion of their money in the transmission line. We would have otherwise gone to borrow that money and burden the people of Kenya," he said.

He expressed confidence that the energy investment deal will in the long run create jobs and expand industrialization.