Court summons top Pipeline official over Sh5bn tanks tender
Kenya Pipeline Company Eldoret depot. The firm seeks to expand its storage capacity. PHOTO | FILE
The High Court has summoned Kenya Pipeline Company’s legal officer to answer allegations that the State agency colluded with an Indian firm to lock out a local contractor from a Sh5 billion tender for construction of oil storage tanks.
Justice Francis Gikonyo issued the summons to clarify inconsistencies in statements made by KPC’s Gloria Khafafa and David King’arui – the local agent for India’s Prashanth Projects Limited.
Kenyan firm Nyoro Construction claims Ms Khafafa assisted Prashanth in sidelining it from the deal.
Ms Khafafa admitted to approving the replacement of Nyoro Construction as a local sub-contractor on Prashanth’s request, while Mr King’arui claimed Prashanth never awarded Nyoro a stake in its consortium.
Nyoro is through the suit seeking to stop KPC and Prashanth from commencing the construction of four storage tanks in Nairobi unless it is awarded 40 per cent of the project.
The firm says it was given the stake before the tendering process, but that Prashanth and KPC have unlawfully kicked it out of the deal.
“The court and parties to the suit will benefit from the explanations she gives in a bid to reconcile the alleged contradiction of the position she has taken. This will also help the court reach a just decision in the application,” said Justice Gikonyo.
Prashanth and Nyoro planned the partnership to comply with procurement laws which require foreign firms to award a local company at least 40 per cent of the tender.
Mr King’arui said in court papers that the planned partnership with Nyoro fell through after one of the contractor’s directors, Samuel Njuguna Njoroge, attempted to instead award the deal to Plan Pavillion, which he owns.
The construction was expected to take 24 months from January this year, but could be delayed by the suit.
Prashanth is to construct four storage tanks with a capacity of 133.52 million litres – equivalent to 22 per cent of KPC’s total national capacity of 612.32 million litres.
Kenya is under pressure to boost its storage facilities to stabilise supplies. It has no strategic reserves and relies solely on oil marketers’ 21-day oil reserves required under industry regulations.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
