Kenya Pipeline Hit With Ksh 10.89 Billion Lawsuit
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Kenya Pipeline Company PLC (KPC) is facing a multibillion-shilling legal dispute after Zakhem International Construction (ZIC) filed a lawsuit at the High Court of Kenya over the Line I Replacement Project contract.
In a statement dated June 15, 2026, Flora Okoth, the Company Secretary, confirmed that the case, Milimani HCCOMM E346 of 2026: Zakhem International Construction Limited vs Kenya Pipeline Company PLC, relates to the Line I Replacement Project, which involved procurement, construction, testing, and commissioning works.
“ Zakhem International Construction (ZIC) has filed a lawsuit against the Company at the High Court of Kenya; Milimani HCCOMM E346 of 2026: Zakhem International Construction Limited vs Kenya Pipeline Company PLC. The suit relates to the contract for Procurement, Construction, Testing, and Commissioning of Line I Replacement Project (the “Contract”),” read part of the statement.
Kenya Pipeline Company Sued Over Construction Payments
According to Kenya Pipeline, ZIC claims that the company failed to settle payments arising from the contract and is now seeking compensation through the courts.
In addition, Kenya Pipeline stated that Zakhem International Construction is demanding: USD 19,036,187.46 for extension of time claims and USD 65,081,253.70 for interest on delayed payments.
This brings the total amount being claimed to approximately USD 84,117,441.16, about Ksh 10.89 billion.
“ ZIC alleges that KPC has failed to pay them USD 19,036,187.46, being extension of time claims, and USD 65,081,253.70 being interest on delayed payments pursuant to the terms of the Contract. They are therefore seeking to recover a total of USD 84,117,441.16 from the Company.”
However, Kenya Pipeline argued that, based on preliminary legal advice, it believes it has strong legal and factual grounds to contest the claims.
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KPC Denies Liability in Billion-Shilling Legal Dispute
The company confirmed that it will defend itself in court and has instructed its legal team to take all necessary steps to protect its interests and those of its shareholders.
KPC has further assured shareholders and the public that the legal dispute does not affect its operations, strategic focus, or financial stability.
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The company added that it will continue to monitor the case closely and issue further updates as the proceedings progress, in line with capital markets regulations.
Meanwhile, Kenya Pipeline has urged shareholders and investors to exercise caution when dealing in KPC securities, noting that the matter remains subject to ongoing litigation and uncertainty.
KPC added that the notice should not be interpreted as an admission of liability or wrongdoing.
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Kenya Pipeline Faces Ksh 10.89 Billion Lawsuit From Zakhem International Construction. Photo/file
