Nairobi, Kenya – The High Court has issued a significant ruling halting the KETRACO-Adani Energy Solutions deal. The agreement, valued at Ksh. 95.68 billion (USD 736 million), was signed on October 11.
It involves developing, financing, and operating key transmission lines and substations across the country.
The ruling follows a petition from the Law Society of Kenya (LSK), which sought conservatory orders just two days prior.
LSK described the deal as “a constitutional sham tainted with secrecy.” They criticized the government for lacking meaningful public participation in the agreement.
In their petition, LSK asserted that the deal raised serious public concern. They claimed that proper due diligence was not conducted, violating constitutional requirements and the Public Private Partnerships Act.
High Court Justice Bahati Mwamuye stated that LSK’s petition met the necessary legal criteria for conservatory orders.
He ruled, “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.”
Justice Mwamuye further ordered that the respondents be restrained from entering into any new agreements related to the deal. He emphasized the need for careful scrutiny of the agreement’s implications.
The judge directed LSK to send the application and court order to the respondents by the end of business on Friday. He required that the respondents file their responses to both the application and petition by November 8, 2024.
