The project deal signed between the government of Kenya through the Ministry of Energy & Petroleum and Indian firm Adani Holdings Limited has suffered a setback following a ruling by the High Court. Energy Cabinet Secretary Opiyo Wandayi on October 11 announced that the Kenya Electricity Transmission Company Limited (KETRACO) and Adani’s subsidiary-Adani Energy Solutions Limited had inked a Ksh95.68 billion Project Agreement.
CS Wandayi said the signing of the agreement marked the conclusion of a long-negotiated process that had been ongoing.
The CS also highlighted that KETRACO conducted comprehensive due diligence on Adani Energy Solutions as the project proponent, along with thorough stakeholder engagement, before signing the agreement.
Wandayi noted that this ensured that all concerns have been addressed and the project is primed for successful execution.
However, Justice Bahati Mwamuye on October 25 issued conservatory orders suspending the implementation of the Ksh95.68 billion deal following a petition filed at the court.
A Mombasa-based non-governmental organization (NGO) petitioned the high court to stop KETRACO and the Energy and Petroleum Regulatory Authority (EPRA) from awarding electricity transmission infrastructure contracts to Adani Energy Solutions Limited.
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The Commission for Human Rights and Justice (CHRJ) in the petition was also seeking the two state agencies be ordered to share information about the deal as required in Article 35 of the constitution and provisions of Access to Information Act.
Court issues orders on KETRACO-Adani deal
While delivering the ruling, the court cited concerns over secrecy, public participation, and constitutional compliance.
“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 the 1st, 3rd, 4th, 5th, 6th, and 7th Respondents jointly and severally and the 2nd Respondent and/or any of its related companies and entities with regard to development of transmission lines, substations, or any other electrical power Infrastructure,” reads part of the ruling.
A conservatory order has also been issued restraining the KETRACO and EPRA from entering into any new agreement or furthering any existing agreement concerning Adani limited or any of its related companies and entities.
Also Read: Govt Inks Ksh95 Billion Deal with Adani; Details
This is with regard to development of transmission lines, substations, or any other electrical power infrastructure.
Further, the judge directed that the case shall be mentioned on November 11 at 11:0am to confirm compliance and to take further directions on the expedited hearing and determination of the petition.
The ruling comes hours after President William Ruto defended the government’s decision to partner with Adani Group in various sectors in country.
President Ruto defended the power transmission deal between Adani and KETRACO stating that it uses the principle of Private-Public Partnerships (PPPs).
The Head of State was speaking during the groundbreaking for the 35MW Orpower 22 Power Plant in Nakuru where he pointed out that PPPs allows the government to unlock resources without having to its funds.
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