The Kenya Electricity Transmission Company Limited (KETRACO) has asked the High Court to dismiss an objection filed by a Spanish firm in a long-running dispute over the enforcement of a debt estimated at Sh10 billion, warning that continued execution proceedings risk crippling Kenya’s power transmission network.
Appearing before Peter Mulwa, KETRACO argued that the objection lodged by Instalaciones Inabensa S.A is fatally defective and should be struck out.
Objection Termed Misconceived
Through lawyer Dennis Mosota, KETRACO told the court that the application filed by the Spanish firm was mischaracterised as an appeal, when in fact it is merely an application seeking a stay of execution of payment arising from an arbitral award.
Mosota argued that the requirement for leave to appeal under Order 43 of the Civil Procedure Rules does not arise in such circumstances.
“The proceedings before this court arise from the enforcement of an arbitral award and are governed by the Arbitration Act and the supervisory jurisdiction of this Honourable Court,” Mosota submitted.
He added that issues raised by the Spanish firm regarding change of advocates after judgment are purely procedural and do not go to the jurisdiction of the court.
Bank Accounts Frozen
The court heard that on December 11, 2025, the High Court issued garnishee orders attaching all funds held in KETRACO’s bank accounts at several major banks, including:
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NCBA Bank Kenya PLC
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Kenya Commercial Bank
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Standard Chartered Bank Kenya
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Cooperative Bank of Kenya
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Citi Bank
“By the stroke of this court’s judicial pen, all KETRACO’s operational bank accounts were frozen, disabling the company from accessing funds necessary to discharge its statutory mandate,” Mosota told the court.
Risk of Nationwide Blackout
KETRACO warned that unless the garnishee orders are urgently stayed, the banks would be compelled to release the attached funds to the Spanish firm—an action the company says would abruptly halt its operations.
The court was told that the freeze has already caused serious operational paralysis, affecting electricity transmission, routine maintenance, and ongoing infrastructure projects.
Mosota warned that continued execution could plunge the country into a nationwide electricity blackout, with far-reaching consequences.
“Any electricity blackout will cripple industrial production and essential services such as medical care. Such a scenario could easily portend socio-economic unrest,” the court heard.
Public Interest and Regional Impact
KETRACO further argued that its operations are critical not only to Kenya but also to neighbouring countries that rely on cross-border electricity transmission lines.
The freezing of accounts, Mosota said, has already affected the company’s ability to:
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Meet urgent contractual obligations
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Service loans
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Procure critical equipment
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Operate and maintain the national transmission grid
“The garnishee orders effectively halt ongoing projects and threaten stable power transmission nationwide, with severe consequences for public safety, the economy, and energy security,” he submitted.
Spanish Firm’s Financial Status Questioned
KETRACO also raised concerns about the financial status of Instalaciones Inabensa S.A, arguing that the company has been liquidated and cannot be considered a going concern capable of refunding any monies paid out if KETRACO’s appeal ultimately succeeds.
“Unless execution is stayed, public funds will be irreversibly dissipated. If the appeal succeeds, KETRACO will be left with a pyrrhic victory,” Mosota argued.
Bank Guarantee Offered
In urging the court to grant a temporary stay of execution, KETRACO assured the court that it is ready and willing to furnish a bank guarantee as security, pending the determination of the dispute.
Mosota told the court that granting a stay would occasion no prejudice to the Spanish firm, while refusal would cause irreparable harm to KETRACO and the Kenyan public at large.
Company Secretary’s Affidavit
KETRACO’s Company Secretary and General Manager for Legal Services, Florence Mitey, supported the application, explaining that the legal effect of the garnishee order nisi is that KETRACO cannot access its funds and faces the risk of the order being made absolute.
She warned that an absolute garnishee order would immediately cripple KETRACO’s ability to operate and maintain electricity transmission infrastructure, disrupt ongoing projects, and interfere with electricity supply nationwide.
Origin of the Sh10 Billion Claim
The disputed sum arises from a Final Arbitral Award dated July 30, 2019, relating to the Lessos–Tororo 400kV Transmission Line Project.
Under the award, the Spanish firm was granted:
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EUR 30,887,820.39 as the principal sum
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EUR 6,477,870.77 in accrued interest as at July 30, 2019
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Sh102,165,144.20 in costs
Interest continues to accrue at rates of up to 18 per cent per annum, pushing the total claim to approximately Sh10 billion.
Mitey told the court that the magnitude of the award and the accumulating interest far exceed KETRACO’s financial capacity and asset base, and immediate enforcement would bring the company’s operations to an abrupt halt—contrary to public policy and the interests of justice.
Court to Decide on Stay
Justice Mulwa is expected to issue directions on whether to stay execution of the garnishee orders as the court considers the broader public interest implications of enforcing the arbitral award.