Adani is about to lose the million dollar contract

Kenya has suspended a $736 million contract with India’s Adani Energy Solutions to build and operate power infrastructure, including transmission lines. Source: Reuters

The deal was signed in a public-private partnership between Kenya’s state-owned Kenya Electric Transmission Company and Adani Energy Solutions, Reuters reported.

Last October 11, the country’s Ministry of Energy said that this agreement will help to deal with continuous power outages and economic growth in the country.

However, the High Court recently said that the government cannot proceed with the 30-year contract with Adani Energy Solutions until the court decides on the case brought by the Law Society of Kenya challenging the contract. The Law Society argued the agreement was ‘a constitutional sham’ and ‘riddled with secrecy’.

A spokesperson for the Adani Group was contacted by Reuters but did not respond to a request for comment.

The Adani Group, founded by Indian tycoon Gautam Adani, recently came under fire for offering to lease the country’s main airport for 30 years under another proposed public-private partnership project in Kenya. They expressed interest in expanding and operating the airport.

The Law Society of Kenya along with the Human Rights Commission of Kenya have also challenged the proposed airport deal in court, saying it is unaffordable (expensive)! It can also create an employment crisis.