Kenya Pipeline Company rejects Sh10.8bn contractor claim

Kenya Pipeline Company (KPC) has petitioned the High Court to dismiss a Sh10.84 billion claim filed by Lebanese contractor Zakhem International Construction. The claim relates to the Mombasa-Nairobi fuel pipeline replacement project, a major energy infrastructure investment valued at approximately $484.5 million.

Zakhem International is seeking roughly $19.04 million for extension-of-time items and $65.08 million in interest. The contractor alleges that delays in the project were caused by KPC through late approvals, equipment procurement delays, and design changes.

KPC argues that the dispute has already been resolved through previous court cases, negotiated agreements, and consent judgments. The corporation maintains that the new lawsuit is an abuse of the court process and is time-barred, as it attempts to relitigate matters stemming from a 2014 contract that was completed in 2018.