In a significant legal development, Kenya's High Court has suspended a $736 million agreement between the state-owned Kenya Electrical Transmission Company (KETRACO) and India's Adani Energy Solutions.

The deal, which involves the construction and operation of power infrastructure including transmission lines, was signed earlier this month amidst promises from the energy ministry that it would help alleviate persistent power blackouts and foster economic growth.

The court's suspension follows a challenge by the Law Society of Kenya, which contends that the public-private partnership agreement is "a constitutional sham" and "tainted with secrecy."

The society argues that KETRACO and Adani Energy Solutions failed to conduct meaningful public participation in the project, a requirement stipulated under Kenya's Public Private Partnerships Act of 2021.

Under this act, meaningful public engagement is essential for private sector involvement in public projects.

While the energy ministry previously asserted that a competitive bidding process was conducted, the Law Society's claims highlight concerns over transparency and adherence to legal protocols.

The High Court has ruled that the government cannot proceed with the 30-year agreement until a determination is made regarding the Law Society's case.

This legal scrutiny comes at a time when the Adani Group, founded by Indian billionaire Gautam Adani, is already facing backlash in Kenya over another contentious public-private partnership.

This earlier project involves a proposal to lease the country's main airport for 30 years in exchange for its expansion, a plan that has also been challenged in court by the Law Society of Kenya and the Kenya Human Rights Commission.

Critics argue that this airport deal is financially burdensome, could lead to job losses, and fails to provide value for money.

As the situation unfolds, the Adani Group has yet to issue a response to the latest developments regarding the power line deal.

The outcome of the court's deliberations could have far-reaching implications for both the energy sector and public-private partnerships in Kenya.