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Kenya's high court on Friday suspended a $736 million deal between a state utility and India's Adani Energy Solutions to construct and manage power infrastructure, including transmission lines. The public-private partnership agreement between the state-owned Kenya Electrical Transmission Company (KETRACO) and Adani Energy Solutions was inked earlier this month. On October 11, the energy ministry stated that the partnership would help alleviate persistent power outages and bolster economic growth. The high court ruled that the government could not proceed with the 30-year agreement with Adani Energy Solutions until the court resolves a case brought by the Law Society of Kenya challenging the deal. The law society contends that the power deal is 'a constitutional sham' and 'marred by secrecy'. Additionally, the law society asserts that KETRACO and Adani Energy Solutions failed to conduct meaningful public engagement around the project, a requirement under Kenya's Public Private Partnerships Act of 2021, which permits private sector involvement in public projects. The energy ministry previously claimed that it had conducted a competitive bidding process. A spokesperson for the Adani Group did not immediately respond to a request for comment. The Adani Group, founded by Indian billionaire Gautam Adani, recently sparked controversy in Kenya for another proposed public-private partnership project involving the 30-year lease of the country's main airport in exchange for its expansion. The Law Society of Kenya, along with the Kenya Human Rights Commission, has also challenged the proposed airport deal in court, arguing that it is unaffordable, poses a threat to job security, and does not offer value for money.
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