The High Court of Nairobi has paused the implementation of the Adani-Ketraco energy deal following a petition filed by the Law Society of Kenya.
In orders that were issued by Justice Bahati Mwamuye on Friday, October 25, Adani and Kentraco were barred from implementing the deal until the matter is heard and determined.
As per the multi-billion plan, Adani was to undertake the development of transmission lines, and substations among others.
"That pending the inter partes hearing and determination of the Application dated 23/10/2024, a conservatory order be and is hereby issued suspending the implementation of any Project Agreement between the 1st, 3rd, 4th, 5th, 6th, and 7th Respondents jointly and severally and the 2nd Respondent and/or any of its related companies and entities with regard to the development of transmission lines, substations, infrastructure. any other electrical power," the judge ruled.
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The orders are a major blow to President William Ruto and his administration given that they have defended the deal and also listed several benefits of the deal to the country's development and fiscal operations.
Notably, the orders were issued after Ruto explained that the PPP deal with Adani would help reduce borrowing by the government.
On the other hand, the court also barred the Ministry of Energy and Kentraco from entering into another deal with Adani until the matter is settled.
"That pending the inter partes hearing and determination of the Application dated 23/10/2024, a conservatory order be and is hereby issued restraining the Respondents, jointly and severally, directly or by their servants, agents, associates, or related entities, from entering into any new agreement or furthering any existing agreement concerning the 2nd Respondent. and/or any of its related companies and entities with regard to the development of transmission lines, substations, or any other electrical power infrastructure." the judge directed.
Further, the Court directed the petitioners to file their affidavits by the close of business today.
Respondents were also directed to file their responses to the affidavits of the applicants by November 1, 2024.
"The matter shall be mentioned on 11/11/2024 in physical/open court at 11:00 AM to confirm compliance and to take further directions on the expedited hearing and determination of the Application and/or Petition," read the orders in part.
