(Photo : adanienergysolutions.com/ www.ketraco.co.ke)

• Kenya's high court has halted a $736 million deal between KETRACO and Adani Energy Solutions.
• The Law Society of Kenya challenged the deal, citing lack of public participation and secrecy.
• This is not the first time Adani Group has faced controversy in Kenya, with another proposed public-private partnership project also being challenged.
• The suspension of the deal raises questions about the future of foreign-led infrastructure projects in Kenya and highlights the importance of transparency and public participation.

In a significant development that has reverberated through the energy sector, Kenya's high court has put a halt to a $736 million agreement between the state-owned Kenya Electrical Transmission Company (KETRACO) and India's Adani Energy Solutions. The deal, inked earlier this month, was intended to construct and operate power infrastructure, including transmission lines, to alleviate persistent power blackouts and bolster economic growth in the country.

However, the high court has ruled that the government cannot proceed with the 30-year agreement until the court makes a determination on a case brought by the Law Society of Kenya. The society has challenged the deal, arguing that it is a constitutional sham and tainted with secrecy. They also claim that 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 has previously stated that it had run a competitive bidding process. However, a spokesperson for the Adani Group, founded by Indian billionaire Gautam Adani, did not immediately respond to a request for comment.

Adani Group's Controversial Deals in Kenya

This is not the first time the Adani Group has faced controversy in Kenya. The group recently sparked anger 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 this proposed airport deal in court, arguing that it is unaffordable, threatens job losses, and does not offer value for money.

The suspension of the deal has raised questions about the future of foreign-led infrastructure projects in Kenya. The final outcome of this case could influence the broader approach to such projects across the nation. It also highlights the importance of transparency and public participation in the development of public projects, particularly those involving foreign companies.

Global Energy Markets and India's Nuclear Power Ambitions

In the context of global energy markets, this development comes at a time when oil prices have tumbled more than $3 a barrel after Israel's retaliatory strike on Iran over the weekend bypassed Tehran's oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East. This has had a significant impact on energy markets, including in Africa.

Meanwhile, in India, the government is committed to growing its nuclear power capacity as part of its massive infrastructure development programme. However, due to earlier trade bans and lack of indigenous uranium, India has been developing a nuclear fuel cycle to exploit its reserves of thorium. This has led to a fundamental incompatibility between India's civil liability law and international conventions, limiting foreign technology provision.