Court says Ketraco operations not bound by new law on State firms

The High Court has rejected a request to suspend the appointment of three directors of Kenya Electricity Transmission Company (Ketraco), ruling that the new government-owned enterprises law does not apply to the utility firm.

The court said Ketraco was not listed under the Government-Owned Enterprises Act, 2025, which formed the basis of the legal challenge. It found that the petitioners had failed to establish a strong case warranting interim orders.

‘Ketraco is not among the entities listed as falling under the regime upon which the petitioners have sought to rely. The Government-Owned Enterprises Act, therefore, does not apply to the impugned appointments,’ the court said.

The ruling leaves the directors-Mercylinnete Rotich, Janerose Gatwiri and Nick Ochola-in office pending determination of the substantive petition lodged by Issa Elanyi Chamao, Patrick Karani Ekirapa and Paul Ngweywo Kirui.

The decision follows an earlier interim order issued in June, which had temporarily stopped the three directors from exercising their board functions.

Those orders had also suspended Ketraco board resolutions made by or in the presence of the three appointees from May 29, 2026, when they were appointed.

The appointees joined Ketraco following an appointment by Energy and Petroleum Cabinet Secretary Opiyo Wandayi.

The National Treasury had advertised the vacancies on May 18, inviting applications for independent directors to the boards of government-owned enterprises, with May 29 as the application deadline.

The petitioners argued that Mr Wandayi appointed the three directors while the advertised recruitment process was still open. They said this bypassed the Government-Owned Enterprises Boards Search and Selection Panel created under the new law.

They challenged the appointments under sections of the Act and constitutional principles covering good governance, transparency, accountability, public participation and fair administrative action.

The petitioners sought orders stopping the three directors from performing their functions and suspending board resolutions made with their participation from May 29.

Ketraco opposed the application, arguing that its governance remains anchored in the State Corporations Act and its Articles of Association because it is absent from the schedules of the 2025 Act.

The company said Parliament had deliberately excluded Ketraco from the new framework. It also argued that the transition provisions could not apply because the audit required before transition had not been completed or published.

The company further told the court that the interim orders had impaired its ability to approve budgets, authorise payments, supervise transmission projects and meet obligations to contractors and financiers.

The Government-Owned Enterprises Act commenced on December 5, 2025. Its First Schedule lists entities including Kenya Power, KenGen, Kenya Airports Authority, Kenya Ports Authority and Kenya Railways Corporation, but not Ketraco.

In its ruling, the court found that the petitioners had not shown a strong case with a likelihood of success. It said the court could later revoke or annul the appointments if the substantive petition succeeded.

The judge also found that the petitioners had not shown irreparable harm or demonstrated that the petition would become ineffective without interim protection.

Since the petitioners had not claimed to have applied for the advertised positions, been shortlisted or been denied consideration, the court found no basis for their claim of legitimate expectation.

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