Kenya: Court Suspends Adani's Sh95 Billion Energy Deal With Kenya

President William Ruto.
25 October 2024

Nairobi Kenya — The High Court has suspended the Sh95 billion agreement between Kenya's Ministry of Energy and Adani Energy Solutions for constructing and operating key electricity transmission infrastructure. Justice Bahati Mwamuye, in a ruling on Friday, barred both parties from advancing the deal until further notice.

Justice Mwamuye directed the Respondents to file and serve responses to both the Application and Petition by November 1, with a court mention scheduled for November 11 to confirm compliance and set further directions for the expedited hearing.

The deal, signed on October 12 by the Kenya Electricity Transmission Company Limited (KETRACO) and Adani, entails Adani building and managing four major transmission lines and two substations for 30 years before transferring them back to Kenya.

President William Ruto defended the partnership on Thursday amid public criticism, positioning it as a strategic alternative to loans or tax hikes. Ruto argued that public-private partnerships are essential for Kenya's development, citing the Nairobi Expressway as an example of successful collaboration.

"To unlock the country's resources, we need private sector investment, which leads to a win-win outcome," he said in Nakuru during the launch of Kenya's third geothermal power plant in Menengai.

Adani, an Indian multinational, has faced scrutiny in Kenya over past controversies in other countries. Despite this, Energy Cabinet Secretary Opiyo Wandayi confirmed that the Sh95 billion deal followed four months of negotiations, with Adani set to construct key infrastructure such as the 400kV Gilgil-Thika-Malaa-Konza line (208.73 km) and the 220kV Rongai-Keringet-Chemosit line (approximately 100 km), as well as new substations at key locations.

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