Adani's $736m Kenya Power Project Halted

Taylor Brooks

Taylor Brooks

October 25, 2024 · 2 min read
Adani's $736m Kenya Power Project Halted

A major setback has been dealt to Indian billionaire Gautam Adani's ambitions in Kenya, as a local court has halted a $736 million power project deal between Adani Energy Solutions and Kenya Electricity Transmission Company (KETRACO). The project, aimed at building and operating high-voltage power transmission lines for 30 years, was finalized earlier this month.

The High Court of Kenya's decision comes after the Law Society of Kenya challenged the agreement, citing a lack of transparency and failure to uphold constitutional principles. The court ruled that the deal was a "constitutional sham" and that KETRACO and Adani Energy Solutions failed to conduct meaningful public participation in the project, as mandated by Kenya's Public-Private Partnerships Act of 2021.

This is not the first time Adani Group has faced scrutiny in Kenya. Last month, a court blocked President William Ruto's plan to grant Adani Airport Holdings Ltd. a 30-year contract to operate Kenya's main airport, citing similar concerns over transparency and constitutional violations.

The Adani Group's struggles in Kenya highlight the importance of transparency and accountability in public-private partnerships, particularly in the energy sector. As the African continent continues to grapple with energy infrastructure challenges, this development serves as a reminder that deals must be done in a manner that prioritizes the public interest and upholds constitutional principles.

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