Kenyan high court has suspended a $736 million (approximately ₹6,189 crore) deal between the state-owned Kenya Electricity Transmission Company (KETRACO) and Adani Energy Solutions. The agreement, signed earlier this month, aimed to build and operate high-voltage power transmission lines over a 30-year period.
The Law Society of Kenya challenged the deal, arguing that it was a "constitutional sham" and lacked transparency. They also claimed that there was insufficient public participation in the project, which is required under Kenya's Public-Private Partnerships Act of 2021.
This suspension could have significant implications for Kenya's energy infrastructure and foreign investment climate. The court's decision adds uncertainty to the partnership, which was intended to address power outages and support economic growth in the country.
As of now, Gautam Adani or the Adani Group has not publicly commented on the Kenyan court's suspension of the $736 million deal. The situation is still developing, and it's likely that the Adani Group will issue a statement or response in the near future.
Apart from this deal, the Adani Group's proposal to operate Kenya's main airport, Jomo Kenyatta International Airport (JKIA), for 30 years was also challenged and eventually suspended in court, last month. The Law Society of Kenya and the Kenya Human Rights Commission argued that the deal was unaffordable, threatened job losses, and lacked transparency. The court blocked the proposal, citing concerns about good governance and accountability.
The Law Society of Kenya has raised issues about the lack of meaningful public participation in the agreements with Adani Group, which is required under Kenya's Public-Private Partnerships Act of 2021.
These disputes highlight the challenges and scrutiny faced by the Adani Group in its efforts to expand its infrastructure projects in Kenya.
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