Stability of laminar flow in a curved channel formed by two concentric cylindrical surfaces is investigated. The channel is occupied by a fluid saturated porous medium; the flow in the channel is driven by a constant azimuthal pressure gradient. The momentum equation takes into account two drag terms: the Darcy term that describes friction between the fluid and the porous matrix, and the Brinkman term, which allows imposing the no-slip boundary condition at the channel walls. An analytical solution for the basic flow velocity is obtained. Numerical analysis is carried out using the collocation method to investigate the onset of instability leading to the development of a secondary motion in the form of toroidal vortices. The dependence of the critical Dean number on porosity and the channel width is analyzed.