A Kenyan court has halted a $736 million agreement between the government and India’s Adani Group aimed at constructing and managing high-voltage power transmission lines for three decades.
The decision comes amid growing scrutiny of the Adani Group, founded by billionaire Gautam Adani.
Despite the suspension, President William Ruto defended the partnership, asserting the need for public-private collaborations due to the country’s limited borrowing capabilities for infrastructure projects.
However, the lack of transparency in these agreements has sparked public protests, particularly as Kenya grapples with significant debt risks and persistent corruption, prompting reliance on the International Monetary Fund for support.
The partnership, finalised earlier this month between Kenya Electricity Transmission Company (KETRACO) and Adani Energy Solutions, was intended to alleviate ongoing power blackouts and stimulate economic growth.
However, High Court Judge Andrew Bahati Mwamuye ruled that Kenyan authorities must refrain from proceeding with the project or entering new contracts related to electrical infrastructure development.
The Law Society of Kenya, which initiated the court case, criticised the agreement as lacking constitutional legitimacy and transparency, emphasising that KETRACO and Adani Energy Solutions did not conduct the required public participation as mandated by Kenya’s Public-Private Partnerships Act of 2021.
This ruling follows a previous court decision that blocked a 30-year contract allowing Adani Airport Holdings Ltd. to operate Kenya’s main airport, with critics arguing that leasing such strategic assets to private entities undermines governance principles and responsible use of public resources.
