Kenya Pipeline Company PLC has warned its shareholders and investors after being sued by a foreign construction company seeking KSh 10.89 billion in a dispute linked to a major infrastructure contract.
In a cautionary announcement on June 15, the Kenya Pipeline Company PLC company secretary, Flora Okoth, disclosed that the company is facing a material litigation case filed by Zakhem International Construction Limited at the High Court of Kenya in Milimani, under HCCOMM E346 of 2026.
Shareholders and the investing public have been advised to exercise caution when dealing in the company’s securities due to the nature of the claim.
“Given the nature of the claim and the uncertainties inherent in litigation proceedings, shareholders and investors are advised to exercise caution when dealing in the securities of the Company pending the resolution of the matter and/or the publication of further announcements by the Company,” Flora Okoth warned.
The case, titled Zakhem International Construction Limited vs Kenya Pipeline Company PLC, arises from the contract for Procurement, Construction, Testing and Commissioning of the Line 1 Replacement Project.
“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 1 Replacement Project (the “Contract”),” the Kenya Pipeline announcement read in part.
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Kenya Pipeline Faces Ksh 10.89 Billion Claim
According to the company’s cautionary announcement, Zakhem International Construction alleges that Kenya Pipeline Company has failed to settle payments under the contract.
The contractor claims USD 19,036,187.46 as an extension-of-time claim and an additional USD 65,081,253.70 as interest on delayed payments, as provided under the terms of the agreement.
The total amount sought in the lawsuit is USD 84,117,441.16 (Ksh 10.89 Billion), equivalent to approximately KSh 10.89 billion. The claim is now before the High Court for determination.
“They are therefore seeking to recover a total of USD 84,117,441.16 from the Company,” the company secretary stated.
Investors Assured of Stable Operations and Ongoing Legal Response
In their response, Kenya Pipeline Company stated that based on the information currently available and preliminary legal advice from its advocates, it believes the company has credible legal and factual grounds to contest the claim.
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The Board confirmed that the company will defend the proceedings and has instructed its legal team to take appropriate measures to safeguard its interests and those of its shareholders.
Further the company stated that it will continue to monitor the case and will issue further announcements as material developments arise, in line with applicable law and the Nairobi Securities Exchange Listing Rules.
Kenya Pipeline also assured shareholders and stakeholders that the litigation does not affect its strategic direction, operational stability, or financial position.
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