Cost of new pipeline jumps to Sh51.5 billion

President Uhuru Kenyatta flanked by Deputy President William Ruto turns on a valve to signify the start of oil production in Kenya during the inauguration of the Ngamia 8 Early Oil Pilot Scheme in Turkana County on Sunday. [Photo: Courtesy]

Kenya Pipeline Company (KPC) has agreed to pay an additional Sh2.7 billion to a Lebanese contractor as settlement for delays in completion of a project awarded four years ago.

This takes the total cost for the new Mombasa-Nairobi pipeline to Sh51.5 billion following controversial demands by Zhakem - the engineering firm that won the tender.