Kenya High Court Suspends Adani-KETRACO $736M Energy Deal

Kenya’s High Court has suspended a $736 million power infrastructure deal between Kenya’s state-run Kenya Electrical Transmission Company (KETRACO) and India-based Adani Energy Solutions.

The agreement, signed earlier this month, sought to improve Kenya’s power grid by building transmission lines aimed at reducing widespread blackouts and fueling economic growth.

The decision to halt the deal comes after the Law Society of Kenya (LSK) filed a lawsuit challenging the agreement on grounds of secrecy and lack of public participation, both of which are mandated by Kenya’s 2021 Public Private Partnerships Act.

The LSK argued that the agreement between KETRACO and Adani Energy lacked transparency and meaningful public input, requirements seen as crucial for projects involving foreign investors.

The Ministry of Energy has defended the agreement, stating it was awarded through a competitive bidding process. Adani Group is led by Indian billionaire Gautam Adani.

The Adani Group has faced prior scrutiny in Kenya, particularly over a proposed public-private partnership to lease the country’s main airport for 30 years. That project, also challenged by the LSK and the Kenya Human Rights Commission, was criticized for its cost, potential job losses, and perceived lack of value for taxpayers.

The suspension of the Adani-KETRACO deal has cast uncertainty over future foreign-led infrastructure projects in Kenya, underlining growing demands for accountability and transparency in large-scale partnerships.

In the context of global energy markets, this development comes at a time when oil prices have tumbled more than $3 a barrel after Israel’s recent retaliatory strike on Iran bypassed Tehran’s oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East. This has had a significant impact on energy markets, including in Africa.

(With inputs from IANS)