NAIROBI, Kenya – Busia Senator Okiya Omtatah has filed a fresh constitutional petition seeking to stop the planned privatisation of the Kenya Pipeline Company (KPC), warning that the proposed sale is unconstitutional, IMF-driven and poses a serious threat to Kenya’s sovereignty and energy security.
In the petition filed at the Milimani Law Courts, Omtatah — together with co-petitioners Bernard Muchiri Muchere and Naomi Nyakerario Misati — challenges the government’s plan to sell 65 per cent of KPC through an Initial Public Offering (IPO) by March 2026.
The petitioners argue that the move is unlawful and was not informed by the will of Kenyans but by pressure from the International Monetary Fund (IMF) under Kenya’s Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programmes.
“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 IMF,” Omtatah said.
KPC is currently 100 per cent state-owned and plays a central role in petroleum transportation and storage — functions the petitioners say are critical to national security.
They argue that disposing of a controlling stake in such a strategic monopoly undermines Kenya’s energy independence and violates constitutional principles on sovereignty and collective ownership.
According to the petition, KPC posted a Sh6.87 billion profit in 2024 and paid Sh7 billion in dividends to the National Treasury, underscoring its profitability.
“Selling a profitable public asset to service debt erodes national sovereignty, energy security and intergenerational justice,” the petitioners argue.
The case, filed as Petition No. E001 of 2026, names the National Executive through the Attorney General, the Privatisation Commission and Authority, the KPC Board, the IMF, the National Assembly and several individuals as respondents.
The Katiba Institute and the Law Society of Kenya are listed as interested parties.
Beyond the legality of the sale itself, the petition raises concerns over alleged financial irregularities at KPC.
The petitioners claim that more than Sh97 billion in retained earnings and depreciation funds remain unaccounted for, alleging that the rush to privatise could be aimed at concealing possible fraud.
They also challenge the legality of appointments at the Privatisation Commission, claiming its leadership was appointed and reappointed without competitive or transparent processes, rendering its decisions — including privatisation notices — invalid.
Further, the petition accuses the government of bypassing constitutional law-making procedures by approving KPC’s privatisation through Sessional Paper No. 2 of 2025, instead of a Bill debated and passed by Parliament.
It also questions the absence of projected privatisation proceeds in the 2025/2026 budget estimates, arguing that claims the sale is needed to plug budget deficits are misleading.
The petition seeks declarations that the privatisation process, related laws, IMF conditionalities and appointments are unconstitutional; orders nullifying all privatisation decisions and notices; and a permanent injunction barring any sale of KPC shares.
“This is a public-interest case. We seek no compensation. Our sole objective is to protect public assets for current and future generations,” Omtatah said.
The filing comes amid ongoing litigation over the KPC sale. In an earlier case filed by the Consumers Federation of Kenya (Cofek), the High Court issued conservatory orders temporarily blocking the government from proceeding with the privatisation.
Justice Bahati Mwamuye restrained the National Treasury and other state agencies from offering or transferring any KPC shares pending the hearing of the case.
The government, however, maintains that the proposed IPO — approved by Cabinet in July 2025 — is part of a broader strategy to reduce state involvement in business, attract private capital and modernise operations.
State House has previously cited past privatisations such as Safaricom, KenGen and KCB as examples of how partial divestiture can drive growth, deepen public ownership and unlock commercial value.
