The Supreme Court has barred the government from signing a Sh95.68 billion deal to build electricity transmission lines for Adani Energy Solutions Limited, a subsidiary of India’s Adani Group.
The Law Society of Kenya (LSK) has obtained an order charging the government with signing the Special Project Agreement with Adani Energy Solutions to build and operate major transmission lines and substations at a cost of Sh96.68 billion for a lease period of 30 years.
LSK said the project was arrived at in an opaque manner, without meaningful public participation, and that the government deliberately concealed important information about the project.
“Pending the hearing between the parties and determination of the application on 10/23/2024, a provisional order will be issued suspending the implementation of any project agreement between the first (Ketraco), third, fourth, fifth, sixth and seventh companies. The respondents jointly and severally and the second respondent,” Justice Bahati Mwamwe said. (Adani) or any other relevant companies and entities in connection with the development of transmission lines, substations or any other electrical power infrastructure.”
The case will be mentioned on November 11 for further directions.
The judge noted that LSK considered that the agreement was a “constitutional trick” and that it was “tainted by secrecy and lacks the principles of integrity, transparency, openness and accountability.”
“After preliminary consideration of the issues and materials before this Court in the light of applicable provisions of the Constitution, law and case law. I am satisfied that the petitioner/applicant has met the legal threshold for granting unilateral interlocutory injunctions,” the judge said.
LSK has appointed Kenya Electricity Transmission Company (Ketraco), Adani Energy Solutions Ltd, Ministers of Treasury, Energy and Petroleum – John Mbadi and Obio Wandaye respectively, Directorate of Public-Private Partnerships and Attorney-General Dorcas Oduor, to their positions. Respondents in the case.
“The transmission lines and substations are critical national assets that, unless this court intervenes, will be leased to foreign entities in complete violation of the principles of transparency, accountability, intergenerational and intergenerational equity, and the wise use of public funds and resources.” LSK said.
LSK added that given the impact of the implementation of the proposal submitted by the private sector on the control of electricity infrastructure and energy costs, it was necessary for the court to determine its constitutionality in order to protect the public interest.
The agreement with Adani proposes to build a new 206-kilometre Thika-Mala-Konza line, a 95-kilometre Rongai-Kiringit-Chimusit link, and about 98 kilometers of Meningai-Ul-Kalu-Rumoroti Canal, court documents said.
While announcing the deal early this month, Mr Wandai said the agreement marks the beginning of a transformative initiative to develop, finance, build, operate and maintain major transmission lines and substations across the country.
Kenya has resorted to the public-private partnership model to implement energy projects due to the lack of funds needed to expand the transmission network, in addition to old power lines.
The Adani Group is also seeking a 30-year lease to expand and operate Jomo Kenyatta International Airport, but that deal has also been frozen by the Supreme Court.