Court bars KETRACO from releasing funds for power transmission project

In orders issued on December 22, Justice Bahati Mwamuye MBS barred Kenya Electricity Transmission Company Limited (KETRACO), its Board of Directors, the Cabinet Secretaries for Energy and for the National Treasury, and the Attorney General from authorising, approving, processing, or effecting any payment to Inabensa Enerji A.Ş., an engineering firm contracted to implement the project.

The court further directed the respondents to immediately collate and preserve all records relating to the project, including approvals, correspondence, instructions, and payment instruments, pending the inter partes hearing of the application and petition.

The project in question was a high-voltage electricity transmission infrastructure contract awarded to Inabensa Enerji A.Ş. as part of Kenya’s national grid expansion programme. It involved the design, construction, and commissioning of a transmission line, erection of transmission towers, and associated substation extensions intended to strengthen the country’s electricity transmission backbone.

However, the petitioner, Lalashe Consulting, argues that the project collapsed without delivering any public infrastructure. Court papers state that no transmission line was completed, no substation extension became operational, and no transmission towers were erected, yet a substantial financial claim is allegedly being pursued against the public purse.

According to the petition, the contractor fell into insolvency shortly after termination of the contract, raising fears that any funds released would be irrecoverable. The petitioner contends that paying a bankrupt foreign entity in the absence of completed works would result in irreversible loss of public money and render any subsequent court decision or audit exercise meaningless.

The application further alleges that the threatened payment violates Article 201 of the Constitution, which requires public finances to be managed prudently, responsibly, and with demonstrable value for money.

Justice Mwamuye ordered that the respondents and the interested party be served immediately, with affidavits of service to be filed by December 24, 2025. Responses to both the application and the petition are to be filed and served by January 16, 2026, with any rejoinder due by January 23, 2026.

The matter will be mentioned virtually on January 29, 2026, to confirm compliance and to issue further directions on the expedited hearing and determination of the case.