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Directors of Lebanese firm Zakhem face jail over Sh537m debt
Workers lay a pipeline. Azicon Kenya was one of the companies sub-contracted by Zakhem International Construction for the replacement of the 450-kilometre Nairobi-Mombasa pipeline in 2018, at a cost of Sh48 billion.
A Kenyan firm wants directors of Lebanese firm Zakhem International Construction Limited sentenced to civil jail over the failure to pay a debt of Sh537 million.
Azicon Kenya Limited said in the application that there was evidence that Zakhem International had recently received the last payment from Kenya Pipeline Company (KPC), for a tender to replace the Mombasa-Nairobi pipeline.
However, the directors of the firm, including Ibrahim Salim Zakhem and Abdallah Salim Zakhem (who is also the Honorary Consul of Lebanon in Nairobi), have allegedly refused to pay Azicon, despite having been served with a court order directing them to pay the money.
“The open contempt of court decree herein warrants the arrest and committing the directors of the defendant to civil jail in the event that they continue to disregard the decree in contempt of court,” Azicon said in the application.
High Court judge Aleem Visram directed the Azicon’s lawyers to serve the application and supporting documents on the directors, ahead of the hearing on July 30.
Azicon’s managing director David Kibet Tonui said that Zakhem International has refused to settle the debt, despite receiving over $110 million from KPC.
The Kenyan firm was subcontracted by Zakhem to do electrical, instrumentation and telecommunication installation work at KPC to replace the old pipeline.
Mr Tonui said the firm completed the works and was issued with certificates, yet Zakhem has refused to settle the debt.
“Most recently, the defendant (Zakhem) refused, declined or ignored to pay the plaintiff the balance of the decretal sum plus interests despite receiving over Sh485,000,000 from Kenya Pipeline Company as per ruling dated 23rd June, 2025,” Mr Tonui said.
He wants the court to issue summonses for the directors of Zakhem to appear and explain why they have ignored the ruling.
“It is only fair and to the interest of justice that the aforesaid directors of the defendant company are examined by this honourable court on the ability of the respondent company to settle the said costs, failure to which the veil should be lifted and have them in person settle the costs from the monies received from KPC,” he said.
He is also seeking an order preventing the directors of Zakhem International from leaving the country unless authorised by the court.
Azicon Kenya was one of the companies sub-contracted by Zakhem International Construction for the replacement of the 450-kilometre Nairobi-Mombasa pipeline in 2018, at a cost of Sh48 billion.
Azicon said the contract was for $10,137,424 (about Sh1.3 billion) and Zakhem only paid it $6,509,502 (about 840 million), leaving a balance of $4,160,857 (Sh537.3 million).
Another firm sub-contracted by Zakhem International to execute the contract was also pursuing a payment of Sh670 million last year.
Multiple ICD (Kenya) Ltd had even obtained a court order freezing KPC’s bank accounts, but the order was lifted after it emerged that the State-owned firm was not holding any money on behalf of Zakhem International.
