Kenyan court suspends $736 million Adani power line deal

SAM PANTHAKY/ AFP

Kenya's high court on Friday suspended a $736 million deal between a state utility and India's Adani Energy Solutions to build and operate power infrastructure including transmission lines.

The public-private partnership agreement between state-owned Kenya Electrical Transmission Company (KETRACO) and Adani Energy Solutions was signed earlier this month.

On October 11 the energy ministry said it would help address persistent power blackouts and support economic growth.

The high court said the government could not move ahead with the 30-year agreement with Adani Energy Solutions until the court makes a determination on a case brought by Law Society of Kenya challenging the deal.

The law society has argued that the power deal is "a constitutional sham" and "tainted with secrecy". It also said KETRACO and Adani Energy Solutions did not carry out meaningful public participation around the project, a requirement under Kenya's Public Private Partnerships Act of 2021 which allows private sector development of public projects.

The energy ministry said previously that it had run a competitive bidding process.

The Adani Group, founded by Indian billionaire Gautam Adani, sparked anger in Kenya recently for another proposed public-private partnership project to lease the country's main airport for 30 years in exchange for expanding it.

The Law Society of Kenya, along with the Kenya Human Rights Commission, has also challenged the proposed airport deal in court, saying it is unaffordable, threatens job losses and does not offer value for money.

More from Business

  • Sharjah leads trade mission to Kenya and Uganda

    The Sharjah Chamber of Commerce and Industry, represented by the Sharjah Exports Development Centre, has launched a trade mission to Uganda and Kenya, running from November 11th to 14th.

  • Bitcoin surges to new record after Trump re-election

    Bitcoin soared to a record high above $82,000 on Monday on expectations that cryptocurrencies will boom in a favourable regulatory environment following the election of Donald Trump as US president and of pro-crypto candidates to Congress.

  • Talabat announces plans for IPO on Dubai Financial Market

    Talabat Holding plc, the on-demand food and grocery delivery service, has revealed its intention to proceed with an initial public offering (IPO) and list its shares on the Dubai Financial Market (DFM).

  • UAE records significant growth in IP registrations

    The Ministry of Economy has announced a notable growth in intellectual property (IP) registrations in the UAE during the first nine months of 2024, highlighting the success of national efforts to foster an innovation-friendly environment.

  • Dubai's GDP up 3.3% in Q2, 2024

    Dubai's GDP rose 3.3% in Q2 2024, to reach AED116 billion, and 3.2% in H1 2024, to touch AED231 billion, according to His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister of the UAE, Minister of Defence, and Chairman of the Executive Council.

Coming Up on Dubai Eye

  • Afternoons with Helen Farmer

    1:00pm - 4:00pm

    Every weekday afternoon, Helen Farmer will help you to navigate the highs and lows of life in the UAE. Stay up to date with what’s happening and where to go.

  • The Debrief

    4:00pm - 7:00pm

    Join Lucy & Dane on Dubai Eye 103.8 for The Debrief from 5pm to 7pm, the perfect way to unwind after a busy day at the office.

BUSINESS BREAKFAST LATEST

On Dubai Eye

  • Is There Sufficient House Supply In UAE

    Dubai’s current population is more than double compared to almost twenty years ago, which now stands at 3.7 million. Lots of families are also moving to the UAE now. So what does it mean for the property market?

  • Noon's First Female Delivery Driver

    Glory Ehirim Nkiruka is Noon’s first ever female delivery driver. In her first ever interview, she explained why she loves her job, despite the heat!