KPC denies paying Sh40 billion extra in pipeline set up deal

Construction of multi-product oil pipeline at Kokotoni village along the Mombasa-Nairobi highway, July 15, 2015. [File, Standard] 

Kenya Pipeline has denied claims that Kenyans may have spent nearly double the initial cost of building the Sh48.4 billion oil pipeline connecting the port of Mombasa to its Nairobi depot.

In response to a story that appeared in The Standard yesterday, the state corporation said it had in March 2014 advertised for tenders for the construction of the Mombasa/Nairobi petroleum products pipeline and subsequently awarded the contract to Zakhem International Construction Limited. Zakhem later subcontracted Oilfields Engineering and Supplies Limited through a contract dated November 17, 2015, which KPC was not a party to.