Industrialist Gautam Adani’s company, Adani Energy Solutions, has faced a setback as a high court has suspended a deal worth $736 million (around ₹6,185 crore) with a government company. Under this deal, Adani Group’s company was set to develop power infrastructure and transmission lines under a public-private partnership.
This case is in Kenya, where the High Court suspended the deal on Friday. Adani Energy Solutions had signed this deal with Kenya’s government-owned company, Kenya Electrical Transmission Company (KETRACO), earlier this month.
Regarding this deal, Kenya’s Ministry of Energy stated on October 11 that it would help boost economic growth and mitigate frequent blackouts in the country.
What did Kenya’s High Court say?
Kenya’s High Court suspended the deal, stating that the government cannot enter into a 30-year agreement with Adani Energy Solutions until it decides on a case filed by the Law Society of Kenya, which opposes the deal.
What are the arguments from the Law Society of Kenya?
The Law Society of Kenya claims this power deal is a betrayal of the constitution, arguing that it is overly secretive. Additionally, they stated that neither KETRACO nor Adani Energy Solutions conducted public participation for this project, which is mandatory under Kenya’s Public-Private Partnership Act 2021.
According to a report from ET, Kenya’s Ministry of Energy had earlier mentioned that a competitive bidding process was followed for this deal. However, Adani Group has not yet released any statement on this matter.
Anger against Adani in Kenya
There is visible anger among Kenyans regarding Adani Group’s entry into the country. Recently, protests erupted over a proposal to hand over Kenya’s primary airport to Adani Group for 30 years in exchange for its expansion.