Pipeline company has been dealt a blow following a court of appeal ruling that decline to suspend an order seeking to pay 4.6 billion shillings to zakhem international company. In the ruling at Milimani law courts the three-judge bench led by Justice Roselyn nambuye ruled that kpc's application asking the court to suspend the commercial court order will have to wait for the main appeals outcome.
In June this year the commercial court order the state corporation to pay zakhim a Lebanese frime the amount for delay in the construction of a 450 km parallel Mombasa Nairobi oil pipeline. Kpc was ordered to pay the money within 30 days of the ruling. Kcp is expected to contest the ruling on the controversial payment that is subject over directorate of criminal investigations prob since last year.
At first KPC also hired Shengli Engineering and Consulting Company (SLECC), a Chinese company for Sh12 billion to supervise construction of the pipeline.Though Zakhem wanted to instal the leak detection system at an extra cost of Sh400 million during the construction of the line, KPC never saw the sense behind it by then.
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