A legal battle over a stalled electricity transmission project has taken a new turn after the High Court stepped in to stop any further financial action linked to the deal.
The court has issued conservatory orders halting all payments and decisions connected to the project amid claims that public money was at risk despite no work being delivered.
In the orders issued in December, Justice Bahati Mwamuye MBS blocked the Kenya Electricity Transmission Company Limited (KETRACO), its Board of Directors, the Cabinet Secretaries responsible for Energy and the National Treasury, and the Attorney General from approving or processing any payments to Inabensa Enerji A.Ş.
The Turkish engineering firm had been contracted to carry out the project under Kenya’s national grid expansion programme.
The court also directed all the respondents to immediately gather and safeguard every record linked to the project. These include approvals, correspondence, instructions, contracts, and payment documents.
The preservation of records is meant to ensure that all relevant information remains intact as the court prepares to hear the case fully.The disputed project involved the construction of high-voltage electricity transmission infrastructure meant to strengthen the country’s power transmission system.
It included the design, construction, and commissioning of a transmission line, the erection of transmission towers, and extensions to existing substations.
These works were expected to improve electricity reliability and support national development goals.However, according to court filings by Lalashe Consulting, the project failed completely.
The petitioner claims that no transmission line was completed, no towers were erected, and no substation extensions became operational.
Despite this alleged total lack of performance, a large financial claim is said to be under consideration for payment using public funds.
The petition further states that the contractor became insolvent shortly after the contract was terminated.
This raised serious concerns that if any money were paid out, it would be impossible for the government to recover it. Lalashe Consulting argues that releasing funds to a bankrupt foreign company without completed work would lead to an irreversible loss of public money and undermine accountability.
The application also points to constitutional concerns, arguing that the threatened payment goes against Article 201 of the Constitution.
This article requires public finances to be managed in a responsible and prudent manner and demands clear value for money. The petitioner insists that paying for work that was never delivered would violate these principles and set a dangerous precedent.
Justice Mwamuye ordered that all respondents and the interested party be served with the court papers immediately. Affidavits confirming service must be filed by December 24, 2025.
The court further directed that responses to the application and the main petition be filed and served by January 16, 2026. Any reply to those responses must be submitted by January 23, 2026.
The case will be mentioned virtually on January 29, 2026. During that session, the court will confirm whether all parties have complied with the orders and will issue further directions on how the matter will be heard and determined on an expedited basis.
The conservatory orders remain in force, effectively freezing the project and any related payments until the court reaches a final decision.
