State Ownership No Shield: Court Lets Spanish Firm Pursue Ketraco Liquidation Over KSh 10B AwardState Ownership No Shield: Court Lets Spanish Firm Pursue Ketraco Liquidation Over KSh 10B Award
Key Highlights
- The High Court has dismissed Ketraco's preliminary objection and allowed Spanish contractor C.A.
- Infraestructuras T&I SLU to pursue a liquidation petition over an unpaid award of about KSh 10B ($76.98M).
- The court held that state ownership does not automatically shield the transmission company from insolvency proceedings and that Cabinet approval is not required before a creditor files a liquidation petition.
The High Court has cleared the way for a Spanish contractor to pursue the liquidation of the Kenya Electricity Transmission Company (Ketraco) over an unpaid award of about KSh 10B ($76.98M).
The ruling matters beyond one company: it says a state-owned corporation cannot rely on government ownership alone to avoid insolvency proceedings when it owes a creditor. According to a report by Business Daily dated 14 October 2026, the court dismissed Ketraco's preliminary objection to the petition filed by C.A. Infraestructuras T&I SLU.
What the court decided
Ketraco had asked the court to stop the case before it was heard. The report indicates it relied on its government ownership and argued that Cabinet approval was needed before a creditor could file a liquidation petition.
The court rejected both points. It held that government ownership does not automatically exempt Ketraco from insolvency proceedings, and that Cabinet approval is not required before a creditor files a petition to wind up a state company.
The judge was not named in the available reporting, and the full text of the ruling was not available to Mwenendo. The Judiciary of Kenya publishes rulings on its case-tracking portal, and the primary record should be checked for the reasoning.
What has not been decided
The ruling is procedural. It allows the liquidation petition to proceed but does not rule on whether Ketraco owes the award, whether it can pay, or whether it should be wound up. No hearing date for the petition was stated in the report.
Ketraco builds and operates high-voltage transmission lines, so any move against it would draw attention from lenders and contractors dealing with state entities. The company has not published a response to the ruling.
Why it matters for state corporations
Mwenendo earlier reported on how Kenya Pipeline lifted profit to KSh 11.6B after listing, showing that some state-linked firms are strongly capitalised. As Mwenendo earlier reported, Kenya Airways is drawing state financing of KSh 45.40B ($350M), a reminder of how unevenly state entities are placed.
For contractors, the decision signals that the courts will hear creditor claims against state companies. For taxpayers, it raises the question of whether the National Treasury settles the award before the petition is heard, a point on which no official statement was available.
In Summary
- Who is involved?
- Spanish contractor C.A. Infraestructuras T&I SLU is the petitioner and the Kenya Electricity Transmission Company (Ketraco) is the respondent.
- What did the court decide?
- It dismissed Ketraco's preliminary objection, so the liquidation petition can proceed.
- When was the ruling reported?
- 14 October 2026.
- Which court?
- The High Court of Kenya.
- Why was it brought?
- The contractor says it is owed an unpaid award of about KSh 10B ($76.98M).
- How did the court reason?
- It held that state ownership does not automatically exempt Ketraco from insolvency proceedings and that Cabinet approval is not needed before a creditor files.