Court Suspends KETRACO-Adani Power Deal
The respondents, including KETRACO, have been directed to file and serve their responses to the application and petition by November 8, 2024.
An image of Adani Group .Photo/India Telegraph.
A court in Nairobi has issued conservatory orders halting the implementation of a Ksh96 billion deal between the Kenya Electricity Transmission Company Limited (KETRACO) and Indian conglomerate Adani.
The agreement, which was set to transfer the operation of four electricity transmission lines and two substations to Adani for a 30-year period, has been suspended pending further legal proceedings.
The petitioner in the case raised concerns that due diligence had not been properly conducted before the deal was approved, arguing that this violated constitutional provisions and the Public Private Partnerships Act.
According to court documents, the petitioner accused the respondents, including KETRACO and other government entities, of bypassing necessary legal safeguards in approving the contract.
In response, Justice Bahati Mwamuye issued conservatory orders, suspending any further actions related to the project.
“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,” the judge ruled.
The order specifically targets the development of transmission lines, substations, and other electrical power infrastructure related to the deal.
The court also restrained the respondents from entering into any new agreements or advancing existing ones involving Adani or its affiliates.
“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,” Justice Mwamuye emphasized.
The respondents, including KETRACO, have been directed to file and serve their responses to the application and petition by November 8, 2024.
They are also required to provide the court with physical copies of all pleadings and documents related to the matter.
The Ksh96 billion deal was viewed as a significant partnership aimed at bolstering Kenya’s power infrastructure, but the suspension has brought it into question.
Adani, one of India’s largest conglomerates, was expected to operate the infrastructure for three decades before eventually handing it back to the Kenyan government.
However, with these legal challenges, the future of the project remains uncertain.
The case is expected to proceed with a hearing, during which the court will determine the legality of the agreement and whether the project will go ahead as planned.
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