Lobby challenges State plans to award multi-billion shillings power deal to Adani
Commission for Human Rights and Justice says the Public Private Partnership Project initiated by Adani Energy Solutions was done without due process and public participation.
What you need to know:
- The organisation argues that public participation is a fundamental requirement in the law-making process.
- Under the PPP deal, Adani wants to construct two power transmission lines and two substations.
A Mombasa-based lobby has moved to court to halt government’s plan to award a multi-billion shillings deal for the construction electricity transmission lines to Adani Solutions Limited, a subsidiary of Indian conglomerate Adani Group.
Commission for Human Rights and Justice says the Public Private Partnership Project initiated by Adani Energy Solutions was done without due process and public participation, making it illegal.
The petitioners further want the court to compel the Kenya Electricity Transmission Company Ltd (Ketraco) to disclose the terms of the agreement it signed with Adani Solutions Ltd.
The organisation argues that public participation is a fundamental requirement in the law-making process, and it should be substantive and not merely a procedural formality to be overlooked by the government after gathering views of the public.
“That it is imperative that this court invokes its powers to issue advice, directives and orders with respect to constitutional and statutory functions and obligations of the key players in the public sector and specifically the Respondents herein to avoid deviation from the rule of law,” the organisation submitted.
Adani Energy Solutions Ltd and a unit of the African Development Bank have been awarded a public-private partnership concession to build the power transmission lines for $1.3 billion (Sh167.7 billion).
The firms are expected to recoup their investments through a new charge on households’ monthly electricity bills, said a source at Ketraco, the State agency behind the contracts.
Mr Julius Ogogoh, the executive director of the organisation said in an affidavit that the decision to give the contract to Adani Energy Solutions without due process undermined the principles of transparency, accountability and public participation as required by the law and the constitution.
He wants the court to issue an order directing Ketraco to conduct extensive public participation with regard to any anticipated public partnership agreement, in strict compliance of the Public Private Partnerships Act and the Public Procurement and Assets Disposal Act, 2015.
Mr Ogogoh said it was clear from a letter from the Energy and Petroleum regulatory Authority (Epra) on July 18, 2024 to its technical committee about an application by Ketraco for Provisional Tariff Approvals that the project was initiated by Adani.
He further said that it also emerged that officials from the Treasury made a quiet visit to Ahmedabad, India, to engage in discussions with Adani regarding the implementation of project in January 2024.
“The Controller of Budget revealed about the visit during her report to Parliament in late September 2024, noted that taxpayers bore the cost of the trip, amounting to Sh1.25 million for two officials,” he said.
Adani wants to finance the project with 70 per cent debt and 30 per cent equity, but Ketraco wants the Indian firm to increase the debt component to 75 per cent as it is cheaper than equity.
Under the PPP deal, Adani wants to construct two power transmission lines and two substations. These include a 206km 400kV Gilgil-Thika-Malaa-Konza transmission line, which will boost power supply around Nairobi. The line is expected to be completed in 2027.
It will also build the 70km 132kV Menengai-Ol Kalou-Rumuruti transmission line that will extend high voltage to Ol Kalou and provide an alternative evacuation route for the Menengai geothermal complex. The line is slated for completion in 2028.
Adani will also build two power stations — the 132kV Thurdiburo substation and the 400/220/132kV substation at Rongai — both set to be complete by 2028.
Currently, Kenya is using taxes and debt to build the high-voltage lines through Ketraco. But with little room for additional borrowing, the State is turning to PPPs to bridge the infrastructure gap.
