The High Court on Friday issued interim orders suspending the implementation of the deal between Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions Limited.
This is after the Law Society of Kenya (LSK) moved to court seeking conservatory orders halting the deal pending the hearing and determination of the case.
In orders issued by Justice Bahati Mwamuye, Adani and Kentraco were restrained from implementing the deal pending the hearing and determination of the matter.
“Pending the inter partes hearing and determination of the Application dated October 23, 2024, a conservatory order be and is hereby issued restraining the Respondents, jointly and severally, directly or by their servants, agents, associates, or related entities,” Mwamuye stated.
In the petition, which was certified as urgent, the LSK described the agreement as “a constitutional sham, tainted with secrecy and lacking in the principles of integrity”.
The LSK also faulted KETRACO and Adani for allegedly failing to conduct meaningful public participation in the proposal and for allegedly failing to conduct proper due diligence of the proposal, contrary to constitutional requirements and the provisions of the Public Private Partnership Act.
The High Court at the same time barred the Ministry of Energy and Kentraco from entering into another deal with Adani until the matter is settled.
“That pending the inter partes hearing and determination of the Application dated 23/10/2024, a conservatory order be and is hereby issued restraining the Respondents, jointly and severally, directly or by their servants, agents, associates, or related entities, from entering into any new agreement or furthering any existing agreement concerning the 2nd Respondent. and/or any of its related companies and entities with regard to the development of transmission lines, substations, or any other electrical power infrastructure,” Justice Mwamuye added.
Adani and KETRACO signed the deal on 11 October, which is valued at Ksh.95.68 billion (USD 736 million) and will see the Indian company develop, finance, build and operate key transmission lines and substations across the country.
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