House orders KPC to suspend payments on Sh11bn claim for Mombasa-Nairobi pipeline

Parliament has ordered the Kenya Pipeline Company (KPC) to suspend any payments arising from a Sh11 billion claim that a contractor building the new Mombasa- Nairobi oil pipeline has slapped on the company.

Public Investments Committee (PIC) directed Mr Joe Sang, the KPC managing director, to stop the approval of any variation of the cost of the contract until the firm completes the pipeline in April and justifies the huge escalation in cost.