Kenya Court Blocks $736M Powerline Deal With Adani Groups
Kenya’s high court suspended a $736 million deal between a state utility and India’s Adani Energy Solutions to build and operate power infrastructure including transmission lines, said Reuters.
The move came after Law Society of Kenya (LSK) came forward with the argument that the power deal is “a constitutional sham” and “tainted with secrecy”.
Justice Bahati Mwamuye ruled that “a conservatory order be and is hereby issued suspending the implementation of any Project Agreement…any of its related companies and entitles with regard to development of transmission lines, substations, or any other electrical power infrastructure”.
The public-private partnership agreement between state-owned Kenya Electrical Transmission Company (KETRACO) and Adani Energy Solutions was signed earlier this month. The Energy Ministry on October 11th said that it would help address persistent power blackouts and support economic growth.
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The project, intended to strengthen Kenya’s electricity infrastructure, has faced controversy since the beginning. The agreement was signed as 30-year public-private partnership with Ketraco, and was said to be aimed to finance and operate several high-voltage transmission lines, including routes like Gilgil-Thika-Malaa-Konza and Rongai-Keringet-Chemosit.
Now the high court said that the government could not move ahead with the 30-year agreement with Adani Energy Solutions until the court makes a determination on the case brought by Law Society challenging the deal.
It also pointed out that KETRACO and Adani Energy Solutions did not carry out meaningful public participation around the project, a requirement under Kenya’s Public Private Partnerships Act of 2021 which allows private sector development of public projects.
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The energy ministry previously said that it had run a competitive bidding process.
This is not the first time the Adani Group, founded by Indian billionaire Gautam Adani, sparked anger in Kenya. Recently, Nairobi expressed over the proposed public-private partnership project to lease the country’s main airport for 30 years in exchange for expanding it.
The Law Society of Kenya, along with the Kenya Human Rights Commission, has also challenged the said airport deal in the court, saying it is unaffordable, threatens job losses and does not offer value for money.
(With inputs from agencies)
