KPC planned sale gets House's nod amid opposition from some MPs

The process of offloading 65 per cent of the Kenya Pipeline Company (KPC) shareholding moved a notch higher after the National Assembly approved Sessional Paper No. 2 of 2025 on privatisation of the company.

This came as a section of Opposition MPs, condemned the hurried passing of the Sessional paper, even before the Privatisation Bill 2025 could be debated for a proper legal framework, and threatened to seek legal redress to stop the process.

The MPs, who spoke after the paper was passed yesterday, read ulterior motive and ‘mischievous intentions’ in the process, saying that Sh100 billion the Government seeks to raise is negligible compared to the budget deficit of about Sh870 billion.

The MPs, led by Kathiani MP Robert Mbui, Jayne Kihara (Naivasha), Joseph Munyoro (Kigumo), Makali Mulu (Kitui Central), Onesmus Ngogoyo (Kajiado North) and Stephen Mule (Matungulu) said the issue was mischievously sneaked in and was initially not in the order paper as agreed by House Business Committee. They said it was unacceptable because before an order paper is presented, members should be aware so that those who have an interest and know that it touches on their constituents will be in the House, and was passed in about 30 minutes.

“Now, yesterday (Tuesday) we received another paper that was, of course, indicating the order of business for today, both in the morning and in the afternoon. But it has come as a very strange surprise that in the afternoon, a supplementary order paper has been presented up in the chamber without notice to members that was actually introducing back the sale of KPC. So, this has been brought in when members are not in the House, when members are not aware,” Mbui said.

He added: “This motion was not debated for the two and a half hours that is supposed to be debated. The usual shenanigans in the House have taken place. A matter as grave as the sale of a critical government installation like the pipeline cannot be debated in few minutes and cannot also be debated by members of the regime and the broad-based government. We take exception and we are rejecting the outcome even of that vote and we are going to go to court as the united opposition.”

But Majority Leader, Kimani Ichung’wah who supported the paper in the House, said KPC remains a critical and strategic investment by Kenyans and over the years, the government has enhanced corporate governance in State Corporations by privatising them through Initial Public Offer (IPO) unless in a situation where strategic investors are brought in. “IPO offers everyone an opportunity to be able to invest in these companies. In a big way, it enhances corporate governance in the management of these companies. One of the key objectives is to inject new corporate governance not only to enhance efficiency in operations but also increase profitability,” Ichung’wah said.

He said the Sessional Paper proposes to privatise 65 per cent of the government shareholding in KPC and will still retain 35 per cent. “We will still maintain control because there is no investor that will come and get there entire 65 per cent. In the IPO, KPC majority shareholding will continue being Government even as we allow other people. I invite Kenyans to start saving in preparation of buying shares in this company, this is a good buy,” the Majority leader insisted.

According to Ichung’wah, the country’s economy has seen a lot of macro and micro fiscal changes in the last three years.

“We have started reaping the benefits of some of these interventions and things are stabilising. The government must introduce new and innovative ways of funding both the provisions of infrastructure and service delivery to Kenyans. We have depended on taxes and Kenyans have said we must innovate new ways of funding, top among these is to release part of shareholding in some profitable organisations,” he affirmed.

Funyula MP Wilberforce Oundo said that privatisation to unlock value is a good idea all over the world but there are instances where it has ended well and in others have not.

According to Oundo, selling an asset to pay pending bills which have not even been verified and accumulated deliberately is foolhardy. “For how long will we keep selling assets to pay pending bills? The monopoly that will come into this, the principle might be good but the grounds are skewed and crooked to benefit a few people and leave people poorer than they were, so I oppose,” he said.

“Another classical case of failure, plunder and theft is being authored here today (Wednesday)… we are told that some amorphous people who claim money out of KPC, we have not been told who they are, how it occurred and what remedy was taken to punish those who oversaw the plunder of these resources,” Oundo added.

Rarieda Mp, Otiende Amollo also said that the House Business Committee needed to explain to the MPs because the order paper for the day did not initially have the issue of KPC.

“When we looked at the order paper this morning (Wednesday), Order 13 was not about privatization and some of us did not come to the House for that. When we come, we now find a different order paper for approval of privatization based on a Sessional paper when the very next order is approval of a bill that regulates privatization. What is this legislation by ambush? This is something we must reject and correct,” Amollo said.