Kenyan court blocks $740 million energy deal with India’s Adani Group over procurement concerns

By Andrew Wasike

NAIROBI, Kenya (AA) - Kenya’s High Court has halted the government’s plans to award a major electricity transmission contract to India’s Adani Energy Solutions Limited, following concerns over the procurement process.

On Friday, the court issued an order blocking the Sh95.68 billion ($740 million) deal after a petition by the Law Society of Kenya (LSK) raised concerns about the lack of public participation and adherence to constitutional standards.

Justice Bahati Mwamuye ruled that "a conservatory order be and is hereby issued suspending the implementation of any Project Agreement…any of its related companies and entitles with regard to development of transmission lines, substations, or any other electrical power infrastructure."

The project, intended to strengthen Kenya’s electricity infrastructure, has faced controversy since its inception. The agreement, signed on Oct. 11 as a 30-year public-private partnership with the Kenya Electricity Transmission Company (KETRACO), aimed to finance and operate several high-voltage transmission lines, including routes like Gilgil-Thika-Malaa-Konza and Rongai-Keringet-Chemosit.

The court’s decision marks a victory for opponents of the deal, including local contractors who argued they were unfairly excluded from the bidding process.

In addition to the blocked energy contract, Adani Group’s recent attempt to secure a management lease at Nairobi’s Jomo Kenyatta International Airport has sparked public protests and resistance from local stakeholders. Critics warned of potential threats to Kenyan jobs and sovereignty.

Both the airport project and the transmission line deal have come under scrutiny for transparency and public participation concerns, with opponents cautioning against economic risks tied to foreign-led operations of critical infrastructure.