Indian billionaire Gautam Adani (inset).
The High Court has directed the government to table evidence of cancellation of two multi-billion shilling deals with Adani Group, which President William Ruto ordered last week following the recent indictment of Indian tycoon Gautam Adani.
President Ruto announced cancellation of the tenders — a Sh96 billion deal for power transmission lines that had already been sealed between the Kenya Electricity Transmission Company (Ketraco) and Adani, as well as another in the pipeline for expansion of the Jomo Kenyatta International Airport (JKIA).
But appearing before Justice Bahati Mwamuye Wednesday, the petitioners — through lawyers Kalonzo Musyoka and Kibe Mungai — said there was no proof that the deals have indeed been cancelled as announced by the president during his State of The Nation address.
“We will treat the statement as strange until there is evidence to support the same,” Mr Musyoka said, adding that the petitioners will proceed with the case.
“The respondents (government) shall, in their responses to the application and the amended petition, adduce evidence of any cancellation, withdrawal, rescission, or revocation of the impugned concession agreements and or Head of Terms,” said the judge.
The judge further granted an order blocking the government from entering into concession agreements for the renovation and development of the JKIA or any other party, pending the determination of the petition filed by Tony Gachoka and others.
"A conservatory order is hereby issued restraining the respondents, jointly and severally, from entering into, approving, or furthering any Concession Agreement relating to the Jomo Kenyatta International Airport with the 1st and 2nd Respondent (Adani Group) or their associated or related entities, or any other party or entity," ordered the judge.
Indicted in the US
This is the second court order blocking the deal after another judge issued a similar order in September in a petition filed by the Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC).
President Ruto announced the cancellation of the Ketraco and JKIA Adani Group deals after billionaire Guatam Adani and seven others were indicted in the US over bribery and fraud claims.
In court Wednesday, through lawyer DBM Mosota, the government said the concession agreement with Adani Group for JKIA was at the proposal stage and, therefore, there was nothing to be cancelled.
Mr Mosota asked the court for more time for him to respond on the President Ruto's State of The Nation address. He added that the government has no objection to the case proceeding as submitted by the petitioners.
Adani Group, through lawyer Ezra Makori, asked to be excused from the proceedings citing cancellation of the JKIA deal.
“On behalf of proponents, we would wish to be excused from the proceedings because the deals have been cancelled,” Mr Makori submitted.
On the deal for the construction of energy transmission lines with Ketraco, the government said that although they had filed an objection to the case being heard before the High Court, they needed time to report on the next steps taken following the president’s directive.
Through lawyer Ken Melly, Ketraco said certain formal steps must be undertaken for purposes of implementing the president's directive.
“We request the court to defer the matter to enable the 1st respondent (Ketraco) and other parties to report to the court, on the outcome of the formal steps,” Mr Melly said.
The judge directed that the matter be mentioned on January 29, 2025, to enable the parties to "table necessary documentation on the substance of the development and the new position”.
