NAIROBI, Kenya- Kenya’s ambitious Sh95 billion deal with Adani Energy Solutions to develop essential electricity transmission infrastructure hit a major roadblock, with the High Court suspending the project on Friday.
Justice Bahati Mwamuye issued the order barring Kenya’s Ministry of Energy and Adani from advancing the agreement, instructing both parties to submit their responses by November 1, before a follow-up court session on November 11.
This agreement, signed just two weeks ago between the Kenya Electricity Transmission Company Limited (KETRACO) and Adani.
The details include constructing and operating four major transmission lines and two substations over a 30-year period before transitioning them back to Kenyan control.
Amid both enthusiasm and criticism, President William Ruto defended the partnership, emphasizing its importance as a public-private collaboration, especially in the context of growing energy needs and infrastructure requirements.
Kenya’s energy blueprint has long aimed to expand its infrastructure through partnerships with international players. Yet, the recent deal with Adani, an Indian multinational, has raised questions due to Adani’s controversial reputation in other countries.
The proposed project is set to tackle key infrastructure points, such as the 400kV Gilgil-Thika-Malaa-Konza line and the 220kV Rongai-Keringet-Chemosit line, totaling over 300 kilometers.
Additionally, Adani is to construct new substations to stabilize and improve Kenya’s energy transmission capabilities.
The partnership received strong backing from Energy Cabinet Secretary Opiyo Wandayi, who confirmed that negotiations with Adani stretched over four months.
For Kenya, the deal with Adani stands as a key opportunity to advance national energy goals without incurring debt or raising taxes, a recurring concern for the nation.
As President Ruto highlighted, private-sector involvement could allow Kenya to unlock essential resources without increasing the financial burden on citizens—a strategy similarly applied to the Nairobi Expressway.
In an address from Nakuru at the launch of Kenya’s third geothermal power plant, President Ruto underscored the deal’s benefits, presenting it as a strategic alternative to loans and tax hikes.
He argued that Kenya’s infrastructure needs—particularly within the energy sector—would best be met through private investments that drive economic growth and self-sufficiency.
“Kenya’s development depends on the resources we unlock through private sector engagement, which leads to a win-win outcome,” Ruto said.
His comments point to Kenya’s broader push for sustainable growth through public-private partnerships (PPPs), a tactic that has already brought transformative projects like the Nairobi Expressway to life.
The partnership with Adani, while facing opposition, aligns with this model that enables the government to pursue critical infrastructure projects without direct taxpayer funding, potentially creating lasting improvements in energy distribution across Kenya.
The suspension comes as Kenya continues to weigh the implications of relying on international partnerships, especially with companies like Adani that bring complex histories.
The court’s decision to pause the agreement indicates a need for transparency in Kenya’s PPP ventures and highlights concerns about potential political and economic risks associated with foreign-controlled infrastructure.
For now, Adani and KETRACO must wait until November 11 for the next legal steps, which could determine the future of Kenya’s largest energy partnership to date.