Kenyan court freezes Ketraco's Sh10 billion over Inabensa dispute
A Kenyan court has ordered the Kenya Electricity Transmission Company (Ketraco) to provide a Sh1 billion bank guarantee before its frozen accounts can be released. The dispute involves Sh10 billion held in 17 bank accounts, linked to a legal battle with Spanish firm Instalaciones Inabensa.
Justice Peter Mulwa issued the ruling, setting strict conditions for Ketraco to regain access to the funds.
The frozen accounts belong to Ketraco, which is locked in a financial dispute with Instalaciones Inabensa. The Spanish company's local representative, CA Infraestructuras T & I SLU, must now take legal steps to formalise its position in Kenya.
Under the court's order, the firm has 21 days to file an application for insolvency recognition. This application must also include a request to appoint a foreign representative before the Kenyan court. Only after these steps can Ketraco proceed with unfreezing its accounts by submitting the required bank guarantee. The case centres on a Sh10 billion sum held across 17 accounts. Justice Mulwa's decision ensures that Ketraco meets financial safeguards before accessing the funds, while Inabensa's legal standing in Kenya is clarified.
Ketraco must now secure a Sh1 billion guarantee to release its accounts. The Spanish company's representative has a three-week deadline to comply with the insolvency filing. The court's ruling ties the unfreezing of funds to these legal and financial conditions.
