The planned privatisation of the Kenya Pipeline Corporation (KPC) is facing strong pushback in Parliament, with lawmakers insisting on full disclosure before any approval is granted.
Members of the joint committees on Energy and Privatisation and Public Debt have raised concerns over the lack of clarity on KPC’s valuation, the details of the Kenya Petroleum Refinery Limited (KPRL) takeover, and the price per share to be offered to the public.
Kwenya Thuku, an Energy Committee member, criticised the process, saying that even the evaluation report on KPC’s assets had not been shared. He added that the takeover of KPRL by KPC remains unclear.
“KPC took over the management of Kenya Petroleum, that might have not been explained, there are so many grey areas that you, CMA, these regulators, must bring forth this committee to speed as to approving or giving the go ahead, but you cannot tell us to give you the go ahead, then go do your business and float these shares,” he said.
Lawmakers also stressed that ordinary Kenyans should have the chance to own the majority of shares, not just wealthy individuals or foreign investors.
“KPC is a security institution. What if the majority of shareholders end up being foreigners? The biggest consumer is Uganda—where are they in all this?” one legislator questioned.
They further asked that potential risks from the transition and its impact on the petroleum sector be fully outlined.
Energy Cabinet Secretary Opiyo Wandayi reassured MPs that no significant risks are expected from the privatisation as long as the government retains a key stake.
“We do not envisage any fiscal risks from the transition as long as the government remains a key shareholder. We have done our analysis, and I can affirm that,” he stated.
During the session, CMA CEO Wycliff Shamiah emphasised that full information must be provided before listing.
“We are saying that for it to be complete before they come to us, they will have to go through certain teams, which they need to get. So, it should not be before you approve. You approve, then they go into this process,” he said.
Wandayi further revealed that KPC’s latest valuation, based on the 2024 financial statements, stands at Sh120.7 billion with no liabilities.
He also highlighted that KPC has not received major capital investments over the past five years, though revenue reached Ksh 39.8 billion with gross profits of 16.5 billion.
He added that KPRL is still in the process of being integrated into KPC, meaning its value is not yet included in the Sh120.7 billion figure.
“We are at the tail end of the transaction, so this means that its value has not been added to KPC’s total value. We should be able to have a final value once the transaction has been completed,” he said.
Thuku disputed the valuation, saying that a single line under KPC is valued at about Ksh 60 billion.
“Chair, we cannot approve something like this. Let them produce disclosure before any further discussions,” he said.
The MPs remain firm that privatisation should only move forward after all relevant information is disclosed and the valuation confirmed, ensuring transparency and protection for the public.
The debate continues, with a second meeting scheduled between the committees and officials from the Treasury and the Office of the Attorney General to further discuss the matter.
The outcome of these discussions will determine the future of KPC’s privatisation and its potential impact on Kenya’s energy sector and capital markets.
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