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Omtatah Moves to Court to Block Kenya Pipeline Privatisation, Citing Sovereignty and IMF Pressure

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NAIROBI, Kenya Okiya Omtatah Okoiti has filed a constitutional petition seeking to halt the proposed privatisation of Kenya Pipeline Company Limited (KPC), warning that the plan to sell a majority stake in the profitable State-owned enterprise is unconstitutional, unlawful, and driven by external pressure rather than public will.

In a statement on Friday, Omtatah said the petition was lodged at the High Court on January 2, 2026, alongside co-petitioners Bernard Muchiri Muchere and Naomi Nyakerario Misati.

The case challenges the government’s plan to divest 65pc of KPC through an Initial Public Offering (IPO) targeted for March 2026.

Omtatah argues that KPC, a fully State-owned company and a critical energy infrastructure operator, should not be privatised to service public debt, describing the move as a threat to national sovereignty, energy security, and intergenerational equity.

“This plan is unconstitutional, unlawful, and anti-sovereign. It is not a decision of the people of Kenya, but one driven by external pressure from the International Monetary Fund,” Omtatah said, accusing the government of yielding to IMF conditionalities that undermine Kenya’s constitutional order.

According to the petitioners, KPC remains a profitable enterprise and does not meet the threshold for disposal under public finance principles. Omtatah cited the company’s 2024 financial performance, in which it reportedly posted a profit of Sh 6.87 billion and paid Sh 7 billion in dividends to the National Treasury.

“Selling such an asset to service public debt violates public finance law and erodes collective ownership of strategic national resources,” he said.

The petition raises a series of constitutional and governance concerns around the privatisation process. Among them is the alleged lack of meaningful public participation, which is a constitutional requirement under Article 10 of the Constitution, particularly for decisions involving public resources and national assets.

The petitioners also question the transparency of KPC’s financial management, pointing to more than Sh 97 billion in retained earnings and depreciation funds that they claim remain unaccounted for.

File image of Kenya Pipeline Company depot. Photo/Courtesy

They argue that the absence of clear accountability over these funds raises red flags and undermines the justification for privatisation.

Further, Omtatah has challenged the legality of appointments at the Privatisation Commission, alleging that irregular and unlawful appointments have compromised the integrity of the process.

He also accuses the government of misusing Parliament by seeking approval for the KPC sale through a Sessional Paper rather than substantive legislation, which he argues is required for such a far-reaching policy shift.

“Parliament is being used to sanitise an otherwise illegal process,” Omtatah said, adding that the approach circumvents constitutional safeguards designed to protect public assets.

Kenya Pipeline Company is a central component of the country’s energy supply chain, responsible for transporting petroleum products across Kenya and the wider region.

Its strategic importance has long placed it at the centre of debates over privatisation, public debt management, and State control of critical infrastructure.

The government has previously defended plans to partially privatise State-owned enterprises as part of broader economic reforms aimed at reducing debt, improving efficiency, and attracting private capital.

However, critics argue that the sale of profitable and strategic entities risks long-term economic and security consequences.

Busia Senator Okiya Omtatah. Photo/Courtesy

In their prayers to the court, the petitioners are seeking declarations that the entire privatisation process is unconstitutional, orders quashing all related decisions, notices, and approvals, and a permanent injunction barring any further steps toward the sale of KPC.

Omtatah stressed that the case is filed in the public interest, noting that the petitioners are not seeking compensation or costs.

“Our sole objective is to defend the Constitution and protect public assets that belong to all Kenyans, today and for generations to come,” he said.

The case now sets the stage for another high-stakes constitutional battle over public finance, executive power and the future of Kenya’s strategic State-owned enterprises.

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