Kenya’s High Court has halted a significant electricity transmission contract awarded to India’s Adani Energy Solutions Limited, valued US $736M, following concerns raised about the procurement process.
The Law Society of Kenya (LSK) filed a petition citing a lack of public participation and constitutional adherence. In response, Justice Bahati Mwamuye issued a conservatory order suspending the project and any agreements tied to it, pending further review.
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Power deal
The project, a 30-year public-private partnership signed on October 11, aimed to enhance Kenya’s electricity infrastructure by financing and operating high-voltage transmission lines. The lines to be developed include: 400kV (Double-Circuit) Gilgil-Thika-Malaa-Konza Line: 208.73 km, 220kV Rongai-Keringet-Chemosit Line: 99.98 km 132kV Menengai-Ol Kalou-Rumuru Line: 89.88 km, 400/220kV substation at Lessos and 132/33kV substation at Thurdibuoro.
The project was to be funded through a mix of debt and equity raised by the Project Company. Adani Energy Solutions was to manage the infrastructure for the duration, ensuring long-term sustainability and efficiency before handing it back to KETRACO. In addition to improving the national grid, the initiative was expected to create jobs and boost economic activity across the country. The court’s ruling represents a win for opponents, including local contractors, who argued that the bidding process was unfairly conducted, excluding domestic firms.
