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Kenyan firm in Sh40m contract row with Siemens

Suswa Power Substation has sued Siemens. FILE PHOTO | NMG
Suswa Power Substation has sued Siemens. FILE PHOTO | NMG 

A local firm hired last year to take part in the construction of Suswa Power Substation is demanding Sh40 million from Siemens, compounding the French firm’s woes just two months after its Spanish partner filed for bankruptcy.

The Kenya Energy Services (KES), a subsidiary of the Nairobi-headquartered East African Oilfield Services Group of Companies, has issued a demand note to Siemen’s lawyers saying its invoices seeking $407,153.92 from the firm have been ignored.

“We have attempted to collect the overdue payment, however, the conduct of Siemens and its personnel vacillates from engaging with us in bad faith to simply ignoring us.” the Kenyan firm says in its demand note seen by the Business Daily.

Siemen Transmission & Distribution SAS signed a Sh1.76 billion (€15.9 million) deal with the Kenya Electricity Transmission Company (Ketraco) five years ago to build the Suswa substation.

The 220 kilo volt (Kv) facility, financed by the a group of international financial institutions was conceived as a key exchange point for power produced from renewable sources in the Rift Valley.

On Friday, Siemens acknowledged involvement of KES in the erection of the Suswa Converter Station.

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