Kenya grid operator Ketraco faces liquidation pressure after Spanish contractor pursues $77mn award

Kenya Electricity Transmission Company (Ketraco), the state-owned operator of the national high-voltage grid, faces mounting enforcement pressure after a Spanish contractor moved to liquidate the company over a long-running commercial dispute. The claim relates to an arbitration award issued in 2019 in favour of C.A. Infraestructuras T & I SLU.

Business Daily reported that the contractor is seeking payment of more than KES10bn ($77mn), reflecting the original award plus accrued interest. The dispute stems from a terminated transmission-line contract dating back nearly a decade.

Ketraco asked the High Court to compel the Spanish company to deposit KES185mn ($1.43mn) as security for costs in the liquidation proceedings. The court declined the request, allowing the enforcement action to proceed.

Court filings cited by Kenyan media indicate that the contractor turned to liquidation measures after other avenues to recover the award proved unsuccessful. The application seeks to compel settlement through insolvency proceedings, although liquidation of a state corporation remains legally complex and is considered an enforcement tool rather than a likely end state.

Ketraco, established in 2008 and fully owned by the Kenyan government, develops and maintains transmission infrastructure, including regional interconnectors and domestic substations. Exposure to a court-ordered enforcement process raises concerns over ongoing project implementation and wider fiscal pressures in Kenya’s power sector.

The National Treasury has not commented publicly on whether it will intervene or support settlement of the liability. Kenyan media have noted that other state-owned enterprises in the energy sector have previously required government backing to resolve similar disputes.