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KPC pays Sh13.8Mn in early compensation for oil leak in Kibwezi.

A new 450km Mombasa – Nairobi pipeline is currently being replaced to meet the region’s future petroleum needs

NAIROBI, Kenya, Mar 24- Kenya Pipeline Company has started compensating residents of Kibwezi East Constituency in relation to a 2015 oil leak on its aging 25-year-old pipeline.

The first batch of compensation vouchers valued at over Sh13.8 million is in relation to Livestock losses with at least at least 147 residents of Thange Valley compensated.

Residents had made claims in four major categories namely; Livestock losses, Crop losses, Medical expenses and Water expenses.

The compensation began in earnest after KPC’s insurer CIC insurance finalized assessments on the first batch of claims made by 278 residents.

“CIC’s investigators and assessors finalized assessment on Livestock losses and are still undertaking assessments on the other three categories as well as additional claims on livestock losses,” KPC said on Friday.

KPC’s insurer CIC insurance began on ground assessments on crop losses on the 14th of March to establish the compensation cost per acre after which the affected resident will be issued with compensation vouchers.

“The 147 residents who received the first batch of compensation vouchers will begin redeeming their vouchers after five days. This means that of the 278 claims lodged by residents only 131 claims are yet to be evaluated for payment,” the company said.

The 14-inch Mombasa-Nairobi pipeline was constructed in 1978 and has been in operation for 39 years, way beyond its 25 year useful life.

KPC says the only pipeline that feeds the country and its neighbours has to be kept in operational state through constant repairs and inspection.

“But a new 450km Mombasa – Nairobi pipeline is currently being replaced to meet the region’s future petroleum needs,” the company says.

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The project is well underway and will be ready for commissioning this year. The new pipeline will improve the safety, reliability and efficient delivery of product to KPC’s customers and reduce the losses and damages caused by spillage on the current 14,” Mombasa -Nairobi pipeline.

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