In a significant legal setback, President William Ruto and the Kenya Kwanza government received unfavorable news today.
This development follows a High Court ruling that temporarily halts the implementation of the Adani-KETRACO deal, one of the government’s major infrastructure projects.
The High Court’s decision, issued this afternoon, responds to a case filed by the Law Society of Kenya (LSK).
The LSK raised concerns over the Adani-KETRACO project, a KSh 95.6 billion deal intended to expand Kenya's power transmission network in collaboration with Adani Energy Solutions, an Indian energy giant.
In its ruling, the court has stopped any further actions on the project until the case’s details are fully examined.
This means that, for now, the Kenyan government and Adani cannot move forward with the agreement or its execution.
The court has scheduled a case mention for November 11, 2024, when both parties will have a chance to present more details before the judge makes a final decision.
Citizen TV, one of Kenya's leading news channels, reported this development, noting that the temporary suspension places uncertainty on the government’s plan to partner with Adani.
The proposed project aims to boost electricity transmission infrastructure, something the government views as vital for Kenya’s economic growth and power access.
This ruling also comes amid reports that Adani is exploring other investment opportunities in Kenya.
The company is reportedly eyeing a deal with the Kenya Airports Authority, specifically with interest in a potential takeover or management role at Jomo Kenyatta International Airport (JKIA).
This interest has added attention to Adani’s activities in Kenya and the government’s approach to engaging foreign investors for national infrastructure projects.
While the High Court has yet to make a final determination, the temporary suspension poses a challenge for President Ruto’s administration, which has prioritized infrastructure development as a key part of its agenda.
The Adani-KETRACO deal has been touted as a crucial project to advance Kenya’s power sector, attract investment, and improve national infrastructure.
However, the legal challenges brought forward by the LSK raise questions about transparency and the procedural aspects of the agreement.
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