Justice Bahati Mwamuye on October 25 issued conservatory orders suspending the implementation of the deal following a petition filed at the court.
The High Court has suspended the implementation of a deal between Kenya Electricity Transmission Company Limited (KETRACO) and Adani Foundation Energy Ltd worth Ksh95.7 billion to operate and maintain transmission lines and substations for 30 years in a bid to curb power blackouts.
Justice Bahati Mwamuye on October 25 issued conservatory orders suspending the implementation of the deal following a petition filed at the court.
“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 agreed”, the order by Justice Mwamuye read.
“That any project between the respondents jointly and any if its related companies and entities with regard to the development of transmission lines, substations, or any other electrical power infrastructure ” the order continued.
A collage of Adani Group CEO Gautam Adani and the logo of his company. /INDIA TODAY
A Mombasa-based non-governmental organization (NGO) petitioned the high court to stop KETRACO and the Energy and Petroleum Regulatory Authority (EPRA) from awarding electricity transmission infrastructure contracts to Adani Energy Solutions Limited.
The Commission for Human Rights and Justice (CHRJ) in the petition was also seeking the two state agencies to be ordered to share information about the deal as required in Article 35 of the constitution and provisions of the Access to Information Act.
While delivering the ruling, the court cited concerns over secrecy, public participation, and constitutional compliance.
“THAT 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 with regard to the development of transmission lines, substations, or any other electrical power Infrastructure,” reads part of the ruling.
A conservatory order has also been issued restraining KETRACO and EPRA from entering into any new agreement or furthering any existing agreement concerning Adani Limited or any of its related companies and entities with regard to the development of transmission lines, substations, or any other electrical power infrastructure. The next hearing is set for November 11, 2024.
This blow came a day after President William Ruto defended the involvement of Indian conglomerate Adani in key infrastructure projects across Kenya, urging Kenyans to embrace private partners as they can finance mega-projects in the country.
Speaking in Nakuru on Thursday 24, October during the groundbreaking of the the 35MW Orpower 22 Power Plant, Menengai, Nakuru County, Ruto was in support of Private Partnerships, including Adani, arguing that their capacity can alleviate the tax burden on Kenyans and cut overdependence on loans.
“The Adani group is investing in the transmission line with their own money, Ksh95 Billion. We would have otherwise gone to borrow that money and burden the people of Kenya, but this is now a private-sector investment. We will pay for that transmission line using a willing charge that has been negotiated,” Ruto announced.
“It is important for us as a nation to appreciate that a partnership between the public and private sector gives us a win-win situation where we can deliver public services using the efficiency and investment of the private sector as a way of supporting overall development in our country.”
On the other hand, former Prime Minister Raila Odinga on October 13 addressed critics’ concerns about transparency and investor integrity. He stressed the Adani group’s track record and ongoing interest in Kenya, which dated back to 2010.
The controversy revolves around proposed Public-Private Partnerships (PPP) for the modernisation of JKIA and Kenya’s power transmission sector, with Kenyans heavily scrutinising the processes leading up to Adani’s involvement, but Raila defended the firm’s credibility by citing firsthand experience with their projects in India.
