Court Orders Kenya Pipeline Company, NEMA to Pay Over $23m in Compensation for Oil Spill

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Court Orders Kenya Pipeline Company, NEMA to Pay Over $23m in Compensation for Oil Spill

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Judge's gavel on the table (© Shutterstock/FabrikaSimf)
Judge's gavel on the table (© Shutterstock/FabrikaSimf)

The Environment and Land Court in Makueni has ordered the Kenya Pipeline Company Ltd. (KPC) and the National Environment Management Authority (NEMA) to jointly pay more than KSh 3 billion (approximately $23 million) in damages and environmental restoration costs following a significant oil spill in the Thange River Basin.

The landmark judgment, delivered on July 11, 2025, found the pipeline company 80% liable and NEMA 20% liable for the extensive environmental damage caused by a pipeline leak on May 12, 2015. 

The spill released petroleum products, contaminating land and water sources and impacting the livelihoods of residents in Makueni County, which is located in the country’s eastern region.

According to a news report by The Kenya Times, the court awarded KSh 2,118,831,676 (about $16.4 million) directly to 3,075 petitioners, led by Muindi Kimeu. 

The petitioners had filed a consolidated petition alleging widespread violations of their constitutional rights, including the rights to a clean environment, life, and property. Based on the court’s directive, this compensation must be paid within 120 days of the judgment.

In addition to financial compensation, the court issued an environmental restoration order, mandating Kenya Pipeline to rehabilitate the contaminated land, soil, surface and underground water, and the entire Thange River ecosystem within 120 days. 

Should the pipeline company fail to comply, it will be required to pay KSh 900,000,000 (about $7 million) to NEMA, which will then assume responsibility for the restoration efforts and report back to the court. Currently, the total award stands at KSh 3,018,831,676 (about $23.3 million).