NAIROBI, Kenya – The government’s plan to privatize the Kenya Pipeline Company (KPC) has come under scrutiny from lawmakers, who are raising red flags over transparency, public participation, and the absence of a publicly available valuation report.
Members of the National Assembly’s Joint Committee on Energy and the Committee on Public Debt and Privatisation on Tuesday warned that the sale of the majority stake in the state-owned oil transporter was being pushed through without adequate consultation.
They said many Kenyans remain unaware of the potential implications of disposing of such a strategic national asset.
Under the proposal, the National Treasury intends to retain a 35 per cent stake in KPC and sell the remaining 65 per cent through the Nairobi Securities Exchange.
Valuation Concerns
The committees, co-chaired by Nakuru Town East MP David Gikaria and Balambala MP Abdi Shurie, accused the Treasury of running an opaque process.
They noted that Parliament has yet to receive a valuation report of KPC and its assets.
“You cannot sell something that you do not even know its value,” Wajir East MP Aden Daudi said, insisting that an independent and public valuation should be a prerequisite for any sale.
Lawmakers also questioned the potential impact on KPC staff, warning that privatization could trigger restructuring and job losses.
Job Security Dispute
Energy Cabinet Secretary Opiyo Wandayi sought to calm fears, assuring MPs that employee welfare is safeguarded under current labour laws.
“We do not foresee any job losses or any restructuring to the current job structures at KPC,” he said.
But Gem MP Elisha Odhiambo disputed the claim, saying many workers were privately voicing anxiety about the changes but feared victimisation if they spoke out publicly.
Treasury Defends Plan
Treasury Cabinet Secretary John Mbadi defended the privatisation plan, arguing it was a necessary step to raise about Sh100 billion to plug budget gaps without increasing taxes.
“Raising taxes at this point is not an option. Privatisation will give us fiscal space while avoiding more burdens on taxpayers,” Mbadi told MPs, adding that the government had rolled out reforms such as e-procurement and stricter accountability rules to curb waste.
The committees will meet again on Wednesday, August 13, with Treasury officials and the Office of the Attorney General before issuing their final recommendations on whether the sale should proceed.
