Sh40 billion may have been lost in Pipeline tender

A man walking along the already set 20-inch 450km Kenya Pipeline Company pipes in Kokotoni on July 15, 2015. FILE PHOTO | NATION MEDIA GROUP

What you need to know:

  • Kenya Pipeline Corporation has embarked on a project which renders useless equipment on which the public has already spent hundreds of millions of shillings.
  • In what whistle-blowers describe as a perplexing, kickback-driven decision, the company decided to throw everything away and buy a 20-inch pipeline.
  • The 16-inch pipeline was to cost Sh16 billion, while the so-called 20-inch Line 5 will cost Sh53 billion.
  • The additional 4-inch change has now seen the biggest wastage of public funds recorded by a parastatal – and after the completion of the delayed pipeline some Sh40 billion will have gone to the drain and infrastructure worth hundreds of millions of shilling rendered obsolete.

Taxpayers have likely lost Sh40 billion in a project to build a new 450-kilometre fuel pipeline between Mombasa and Nairobi, the Nation can reveal.

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