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Uncertainty Surrounds Cancellation of Adani-Ketraco Energy Deal in Kenya

Published 4 days ago3 minute read
Uncertainty Surrounds Cancellation of Adani-Ketraco Energy Deal in Kenya

Eight months after President William Ruto publicly declared the cancellation of controversial infrastructure deals with India’s Adani Group, the Kenyan government confirmed in court on Tuesday that one of these key agreements, the Sh95.68 billion Kenya Electricity Transmission Company (Ketraco)–Adani energy deal, has not yet been formally annulled. This acknowledgement came during a session at the Nairobi High Court before Justice Bahati Mwamuye.

Representing the government, Attorney General Dorcas Odour stated that the cancellation process for the Ketraco-Adani energy partnership is still underway. Ketraco, the state firm involved, requested an additional 30 days to complete the formal cancellation procedures and submit the necessary evidence to the court. "On our part we are still following up with our client (Ketraco) on proper cancellation. We are asking more time of about 30 days to finalise the process and file the evidence of the same in court," the State firm communicated.

Justice Mwamuye granted this request, issuing a final deadline of August 1, 2025, for the government to conclude the cancellation and file all pertinent evidence. The judge emphasized the prolonged nature of this issue, stating, "The issue of the stated cancellation of the contract deal has been raised and has remained pending for a number of court appearances, the respondents and in particular the AG and Ketraco are granted the final opportunity to file and serve the evidence on the same and or their responses to the application and petition and shall do so by close of business August 1, 2025." Should the state fail to meet this deadline, the case will proceed to a full hearing.

The Ketraco–Adani partnership, originally signed in September 2024, involved a substantial project valued at USD 736.5 million (approximately Sh95.68 billion). The agreement aimed to construct 422 kilometres of high-voltage power transmission lines and two substations, designed to enhance national grid connectivity over a 30-year concession period.

These court proceedings are part of a lawsuit initiated by the Law Society of Kenya (LSK), which is challenging the legality of the Ketraco–Adani partnership. The LSK has argued that the deal was pushed through without adequate public participation and due diligence, potentially contravening constitutional requirements for transparency, accountability, and fiscal responsibility. The High Court had previously issued a conservatory order suspending the implementation of this agreement.

In contrast to the Ketraco deal, the government confirmed during the same court session that the Adani–Jomo Kenyatta International Airport (JKIA) concession deal has been formally cancelled. Evidence of this cancellation was submitted to the court, aligning with President Ruto’s public announcement on November 21, 2024. The formal documentation for the JKIA deal's cancellation was presented following a petition that highlighted its absence despite the President's earlier statement.

President William Ruto had initially ordered the Ministries of Transport and Energy to cancel both the JKIA and Ketraco deals with the Adani Group in November 2024. The matter concerning the Ketraco deal is scheduled to be mentioned again in court on October 27, 2025, when directions on the joinder of parties will also be issued.

From Zeal News Studio(Terms and Conditions)
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