High Court stops Ksh95.68b KETRACO deal with Adani

The High Court has blocked the Kenya Electricity Transmission Company (KETRACO) from signing the Ksh95.68 billion deal with Adani Energy Solutions Limited for construction of high voltage power transmission lines and substations.

The court temporarily suspended the signing of the deal on Friday pending the hearing and determination of a case that has been filed against the lucrative deal.

The decision follows a petition filed by the Law Society of Kenya (LSK), which raised issues related to the agreement’s transparency and public involvement.

“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 1st, 3rd, 4th, 5th, 6th and 7th respondents (government) jointly and severally and the 2nd respondent (Adani) or any other related companies and entities with regard to development of transmission lines, substations or any other electrical power infrastructure,” ruled Justice Bahati Mwamuye.

The court’s decision comes just a day after President William Ruto for the first time publicly defended the controversial deal, which will significantly increase electricity costs of implemented.

The deal will see Adani Energy Solutions Limited build three high voltage power transmission lines and related substations and operate them for a period of 30 years before transferring them to the Kenyan government.

In his defense of the deal, the Head of State said that Kenya would have otherwise been forced to borrow to construct the key transmission lines, which would have exerted further pressure on taxpayers through an extra debt burden.

“The Adani Group are investing in the transmission line with Ksh95 billion. We would otherwise have gone to borrow that money and burden the people of Kenya,” said President Ruto.

The transmission lines and substations being developed by Adani are:

• The 400kV double-circuit Gilgil-Thika-Malaa-Konza Line: Spanning 208.73km, the line will include new substations at Gilgil, Thika, and Malaa, as well as substantial extensions at Konza.

• The 220kV Rongai-Keringet-Chemosit Line: Covering 99.98km, this line will include substations at Rongai, Keringet, and Chemosit.

• The 132kV Menengai-Ol Kalou-Rumuruti line: This is a 89.88km line with substations at Menengai, Ol Kalou, and Rumuruti.

• The 400/220kV Substation at Lessos.

• The 132/33kV Substation at Thurdibuoro.

info@theenergyreview.com