The High Court in Nairobi has halted the deal between the Kenya Electricity Transmission Company (Ketraco) and Adani Energy Solutions, a subsidiary of Indian conglomerate Adani Group.
The deal, signed on October 11 and valued at Sh95.68 billion (USD 736 million), involves the Indian company developing, financing, constructing, and operating critical transmission lines and substations across the country.
The development comes just two days after the Law Society of Kenya (LSK) moved to court seeking conservatory orders pending hearing and determination of the case.
In the petition, certified as urgent, LSK described the agreement as “a constitutional sham tainted with secrecy and lacking the principles of integrity.”
LSK further stated that the government did not conduct meaningful public participation on the same while also arguing that the matter is of great public concern.
“The petitioner also faults the respondents for allegedly not conducting a proper due diligence of the proposal contrary to constitutional imperatives and the provisions of the Public Private Partnerships Act,” read court documents.
In his ruling High Court Justice Bahati Mwamuye decreed that LSK’s petition had met the legal threshold for the court to grant conservatory orders halting the Ketraco-Adani deal.
“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 entitles with regard to development of transmission lines, substations, or any other electrical power infrastructure,” Justice Mwamuye 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.”
Additionally, the judge directed the lawyers’ body to forward the application, petition, and court order to the respondents by close of business on Friday and to file an affidavit of service in that regard.
“The respondents shall file and serve their responses to both the application and petition by close of business on 8/11/2024. The parties shall supply the court with physical copies of all pleadings and documents filed by them in this matter,” the judge noted.
