The Kenyan High Court on Friday suspended a deal between the state-owned Kenya Electrical Transmission Company and Adani Energy Solutions to build and operate power infrastructure including transmission lines, Reuters reported.
The 30-year agreement between the two companies was signed earlier this month. Adani Energy Solutions is part of industrialist Gautam Adani-led Adani Group.
The High Court said that the Kenyan government could not go ahead with the $736 million deal until the court decides on a case filed by the Law Society of Kenya challenging the agreement.
The Law Society of Kenya has argued that the agreement is “tainted with secrecy” and a “constitutional sham”, Reuters reported.
It also alleged that the state-owned company and Adani Energy Solutions had not carried out meaningful public participation about the agreement as mandated by the country’s 2021 Public Private Partnerships Act, Reuters reported. The law enables private companies to develop public sector projects in the African country.
The Law Society of Kenya, among other groups, have also challenged in court the proposed agreement between the Kenyan government and another Adani Group company to develop and operate the Nairobi airport for a 30-year period. The society has claimed that the deal is unaffordable and may lead to the loss of jobs.
In September, a Kenyan court suspended the airport deal until it decides on the matter.
Also read: How Adani Group’s airport deal will be a loss for Kenyans
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