In a significant development for Kenya’s energy sector, the High Court in Nairobi has put a stop to the agreement between the Kenya Electricity Transmission Company (KETRACO) and Adani Energy Solutions, a subsidiary of the Indian conglomerate, Adani Group.
This controversial contract, signed on October 11, carries a hefty price tag of Ksh.95.68 billion (around USD 736 million) and involves Adani Energy Solutions in the development, financing, construction, and management of vital transmission lines and substations throughout the country.
The court’s decision comes just two days after the Law Society of Kenya (LSK) filed a petition seeking conservatory orders while the case undergoes judicial review. In their urgent appeal, LSK condemned the agreement, labeling it “a constitutional sham” clouded by secrecy and devoid of integrity.
Moreover, LSK critiqued the government for failing to facilitate meaningful public participation in the deal-making process, emphasizing that this matter is of great public concern. The documents filed in court indicated that the petitioners accused the respondents of bypassing essential due diligence on the proposal, violating constitutional mandates and the provisions of the Public Private Partnerships Act.
Justice Bahati Mwamuye of the High Court recognized that LSK’s petition met the legal criteria necessary to warrant conservatory orders, thereby leading to the suspension of the KETRACO-Adani deal.
“In light of the inter partes hearing and ongoing assessment of the application dated October 23, 2024, a conservatory order is hereby issued, halting the execution of any Project Agreement involving the first, third, fourth, fifth, sixth, and seventh Respondents, alongside the second Respondent and any affiliated entities concerning the development of transmission lines, substations, or additional electrical power infrastructure,” ruled Justice Mwamuye.
In a further directive, the judge instructed LSK to ensure that the application, petition, and court order are conveyed to the respondents by the close of business on Friday, along with filing an affidavit to confirm that these documents were served.
“The respondents must respond to both the application and the petition by the end of the business day on November 8, 2024. Additionally, all parties are required to submit physical copies of related filings and documents to the court,” stated the judge.
The case is set to be revisited on November 11, 2024, at 11 AM.
This unfolding situation underscores the significance of transparency and public participation in major infrastructural agreements, raising questions about the future of energy projects in Kenya. As the legal proceedings continue, all eyes will be on the upcoming court dates and the potential implications for the country’s energy landscape.