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Oil pipeline contractor Zakhem suffers financial blow

Justice David Majanja deliberates in Child Welfare Society of Kenya case on December 24, 2019. He ordered Zakhem Construction to clear debt owed to its subcontractor, Quality Inspectors. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • Quality Inspectors has Zakhem on its radar in the event that the Lebanese firm receives funds from State claimed for delays in the project.
  • Eco Bank and Quality Inspectors are not the only ones baying for Zakhem’s wallet, as the KRA has also slapped the contractor with a Sh17 billion tax bill.

Lebanese firm Zakhem Construction, which constructed the 450-kilometre Mombasa-Nairobi oil pipeline suffered a financial blow, following a court order that has allowed consultancy Quality Inspectors to recover Sh170 million from its accounts held at Stanbic Bank.

Last month, Justice David Majanja allowed Quality Inspectors to recover the money, but court proceedings now show that Zakhem only had Sh393,000 in the two Stanbic Bank accounts identified for attachment.