This archive report was first published on 25 August 2020.
On August 25, 2020, the Court of Appeal rejected an application by Kenya Pipeline Company (KPC) to temporarily suspend payment of Sh4.4 billion to Zakhem International Construction Ltd, a Lebanese company that constructed the Mombasa-Nairobi pipeline.
The court's decision was made by a bench of three judges, who stated that KPC failed to convince them that the appeal would be rendered 'useless' if the demand for payment was not stopped.
According to the judges, there was uncontroverted evidence that Zakhem International Construction Ltd had completed the works and handed the pipeline to the state agency.
Justices Roselyn Nambuye, Wanjiru Karanja, and Hannah Okwengu stated, 'As the execution is in regard to a liquidated amount, there is no way the appeal, if successful will be rendered nugatory.'
Earlier, in June, Justice Grace Nzioka had directed KPC to pay the amount within 30 days, pending the resolution of other matters related to the construction of the pipeline four years ago.
Justice Nzioka had also stated, 'Taking into account the aforesaid and evidence herein in total, I find and hold the applicants claim of EOT 1-4 is not in dispute and therefore, I enter judgment in favour of the applicant in the sum of USD44,019,024 as claimed.'
