How Ketraco lost Sh1 billion in row with Spanish firm

Ketraco engineers conducting maintenance works. [File, Standard] The Commercial Court in Nairobi has ordered government-owned electricity transmission company, Kenya Electricity Transmission Company (Ketraco) to provide a Sh1 billion bank guarantee before its 17 bank accounts are unfrozen in its Sh10 billion payout dispute with Spanish company, Instalaciones Inabensa. Justice Peter Mulwa also ordered Inabensa's Kenya representative, CA Infraestructuras T & I SLU, to formally file its application for the Kenyan court to recognise Inabensa's insolvency proceedings filed before the Spanish Court, and an appointment as the foreign representative within 21 days. According to the Judge, if the Spanish company does not comply within the grace period, the orders attaching Ketraco's bank accounts will lapse. He emphasised the need to balance the interests of both the Spanish firm and Ketraco. According to Justice Mulwa, there is a need to ensure Ketraco meets its end of the bargain while at the same time infraestructuras regularises its status in the country. "In the upshot of the above, is that two competing interests must be harmonised. Ketraco, a public utility, is entitled to pursue its appeal, but it must secure the decree holder's interest," argued the Judge. "The decree holder, on the other hand, must first regularise its standing before it can enjoy the fruits of this judgment. Meanwhile, the substratum of the matter, the funds themselves, must be preserved to protect all competing claims, including that of the newly joined interested party." In its court papers, Ketraco argued that the attachment would cripple its operations and plunge the country into darkness. It stated that it holds a critical role in the country, hence, allowing its accounts to be frozen in a bid to have Inabensa recoup the money amounted to a security threat. Ketraco's lawyer Dennis Mosota said the freezing of the accounts had already caused serious operational paralysis and that it faces imminent failure to honour its contractual relationships with over 540 members of staff who are entitled to salaries and benefits. "Should Ketraco be unable to honour its obligations to its employees, it risks industrial and legal action with the appurtenant ramifications," argued Mosota. He told the court that his client had moved to the Court of Appeal. Ketraco also filed an application before the Commercial Court, seeking to suspend the orders. The lawyer argued that Inabensa would not suffer any harm if the orders were lifted to allow the appeal to proceed. He raised concerns about who would be the recipient of the money as the Spanish firm had allegedly folded. According to the lawyer, it would be impossible to follow the money if Ketraco wins the case. "This honourable court must intervene to stay execution, for unless it does so forthwith, the public funds shall be irreversibly dissipated. The Decree-Holder, having been liquidated, cannot be said to be a going concern capable of refunding any money carted away on the strength of the Garnishee Orders. Therefore, If the applicant is successful in its intended appeal, it will bear the ignominy of a pyrrhic victory," continued Mosota. Mumia said that on December 11, 2025, the court issued orders attaching all the money held in Ketraco's accounts in NCBA Bank Kenya PLC, Kenya Commercial Bank, Standard Chartered Bank, Cooperative Bank of Kenya and Citi Bank. He argued that the strike of the Judge's pen had a ripple effect on millions of Kenyans who rely on the company for electricity provision.

How Ketraco lost Sh1 billion in row with Spanish firm

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