Companies

KPC sued over alleged collusion with Indian firm

KPC

A Kenya Pipeline Company depot in Eldoret. PHOTO | FILE

A local engineering firm has accused Kenya Pipeline Company (KPC) and Indian firm, Prashanth Projects, of unfairly sidelining it from a multi-million shilling tender for the construction of white oil storage tanks.

Nyoro Construction wants the High Court to stop KPC and Prashanth from commencing the project unless it is awarded the 40 per cent stake the Indian firm awarded it prior to the tender proceedings.

The firm says KPC and Prashanth are in advanced stages of preparation for the construction.

Prashanth contracted Nyoro to comply with procurement laws which compel foreign firms to award a local company at least 40 per cent of the tender.

But the local firm says Prashanth has kept it in the dark since winning the tender, and has even received Sh650 million from KPC as part payment for the project.

READ: Indian firm begins work on Sh4.8bn Pipeline terminal