High Court blocks Sh95.68bn Adani power deal
Inset: Indian billionaire Gautam Adani.
The High Court has blocked the government from signing a Sh95.68 billion deal for the construction of electricity transmission lines to Adani Energy Solutions Limited, a subsidiary of Indian conglomerate Adani Group.
Law Society of Kenya (LSK) obtained the order accusing the government of signing the privately initiated project agreement with Adani Energy Solutions to build and operate major transmission lines and substations at a cost of Sh96.68 billion for a lease period of 30 years.
The LSK said the project was reached in an opaque manner, with no meaningful public participation and the government has deliberately concealed crucial information about the project.
“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 1st, 3rd, 4th, 5th, 6th and 7th respondents jointly and severally and the 2nd respondent or any other related companies and entities with regard to development of transmission lines, substations or any other electrical power infrastructure,” Justice Bahati Mwamuye said.
The case will be mentioned on November 11 for further directions.
The judge noted that the LSK contended that the agreement was “a constitutional sham” and it is “tainted with secrecy and is short of the principles of integrity, transparency, openness, and accountability.”
“Upon a preliminary consideration of the matters and materials placed before this Court in light of the applicable provisions of the constitution, statute, and case law. I am satisfied that the Petitioner/Applicant has met the legal threshold for the grant of interlocutory conservatory orders ex parte,” said the judge.
The LSK has named Kenya Electricity Transmission Company (Ketraco), Adani Energy Solutions Ltd, CSs Treasury and Energy and Petroleum, John Mbadi and Opiyo Wandayi, respectively, the Directorate of Public private Partnership and the Attorney General Dorcas Oduor, as respondents in the case.
“The transmission lines and substations are crucial national assets which unless this court intervenes, will be leased to foreign entities in total violation of the principles of transparency, accountability, intergenerational and intra-generational equity and prudent use of public money and resources,” the LSK said.
The LSK added that given the impact of the implementation of the privately-Initiated Proposal on control of electricity infrastructure and cost of energy, it was necessary that the court determines its constitutionality in order to safeguard public interest.
Court documents stated that the agreement with the Adani firm proposes to build a new 206 kilometre Thika-Malaa- Konza Line, 95 kilometre linking Rongai-Keringet-Chemosit and approximately 98 kilometres for the Menengai-Ol-Kalou-Rumuruti conduit.
While announcing the deal early this month, Mr Wandayi said the agreement marked the beginning of a transformative initiative to develop, finance, construct and operate and maintain key transmission lines and substations across the country.
Kenya has resorted to the PPP model to deliver power projects due to lack of funds to expand transmission network, coupled with ageing power lines.
The Adani Group is also pushing for a deal to lease to expand and operate Jomo Kenyatta International Airport for 30 years, but the deal has also been frozen by the High Court.
