Christmas blackout threat as KETRACO accounts stay frozen

The Kenya Electricity Transmission Company Limited (KETRACO) has warned that a court decision freezing several of its bank accounts could interfere with major power transmission projects and put the national electricity grid at risk during the festive season.

The State-owned firm is challenging garnishee orders that locked 17 of its operational bank accounts as part of efforts to enforce a multibillion-shilling legal claim. KETRACO argues that the move could cripple its day-to-day operations and delay critical grid works across the country.

Court ruling behind the freeze

The account freeze followed a High Court ruling delivered on December 11, 2025, which allowed enforcement proceedings in favour of Instalaciones Inabensa S.A., a Spanish company previously involved in power transmission projects in Kenya.

Under the orders, banks holding KETRACO funds were instructed to freeze money in the listed accounts up to Sh195 million, plus interest, pending further court directions. Garnishee orders allow a creditor to recover money owed by attaching funds held by third parties, usually banks.

The court found that all legal requirements for issuing the orders had been met, including the existence of an unsatisfied decree and proof that the funds were attachable.

KETRACO moves to appeal

Following the ruling, KETRACO filed an appeal at the Court of Appeal of Kenya and also applied for a stay of execution at the High Court as it awaits the outcome of the appeal.

Through its lawyers, the utility says the orders are excessive, considering its role in managing nationally critical electricity transmission infrastructure. According to KETRACO, freezing multiple accounts at once could affect staff payments, contractor obligations, and ongoing grid expansion projects.

In court filings, the company warns that releasing the attached funds could disrupt electricity transmission countrywide, with possible consequences for hospitals, security installations, and other essential services—especially during the Christmas period when power demand is high.

Public interest vs commercial enforcement

KETRACO further argues that enforcement measures against public utilities should be handled with caution to avoid harming the wider public interest. The case now raises a broader legal question: how far commercial debt enforcement should go when it risks undermining a national utility that supports the country’s energy system.

The Court of Appeal is expected to determine whether the account freeze should remain in place or be lifted as the legal battle continues.