A Kenyan court has suspended a $736 million( 61,89,92,47,168 crore) government agreement with India’s Adani Group to build and operate high-voltage power transmission lines for a 30-year period, as reported by Bloomberg.
The public-private partnership between Kenya’s state-owned Kenya Electricity Transmission Company (KETRACO) and Adani Energy Solutions was finalized earlier this month, with goals to address recurring power outages and boost economic growth, as reported by Business Insider Africa.
On Friday, High Court Judge Andrew Bahati Mwamuye issued a ruling that prevents Kenyan authorities from advancing with the project or engaging in new agreements with Adani for the development of transmission lines, substations, or other electrical infrastructure.
The Law Society of Kenya, which brought the matter to court, contended that the agreement with Gautam Adani’s company is "a constitutional sham" lacking transparency and failing to uphold essential constitutional principles.
They further argued that KETRACO and Adani Energy Solutions did not conduct adequate public participation in the project, as required by Kenya's Public-Private Partnerships Act of 2021.
The Adani Group, founded by Indian billionaire Gautam Adani, has been under growing scrutiny in Kenya. Last month, a court blocked President William Ruto’s proposal to grant Adani Airport Holdings Ltd. a 30-year contract to operate Kenya’s main airport. “Leasing the strategic and profitable JKIA to a private entity is irrational” and goes against the constitutional principles of “good governance, accountability, transparency, and prudent and responsible use of public money,” stated the Law Society of Kenya and the Kenya Human Rights Commission. President Ruto defended the agreements with Adani Group on Thursday, emphasizing Kenya’s need for public-private partnerships given its limited borrowing capacity for infrastructure projects.
The opacity of these deals, however, has led to public protests, especially as Kenya grapples with a high risk of debt distress and ongoing corruption, which has necessitated support from the International Monetary Fund. Mounting debt repayments and outstanding arrears to contractors and suppliers continue to strain the government.
