The Consumers Federation of Kenya (Cofek) has cautioned potential investors against rushing to buy shares in the Kenya Pipeline Company (KPC), citing an ongoing court case that could halt the privatisation process.
COFEK issued the warning as KPC aggressively markets its Initial Public Offering (IPO), which opened on January 19 and runs until February 19, seeking to raise billions from Kenyan investors.
“Consumers beware: The Kenya Pipeline IPO is still subject to a strong legal challenge to be determined on February 19, 2026. Until then, exercise extreme discretion on these misleading advertisements,” Cofek warned.
The consumer lobby group filed a petition challenging the National Treasury’s proposal to partially privatise KPC via the Nairobi Securities Exchange (NSE), questioning the legality of the entire process. The High Court is scheduled to begin hearing the case on February 19.
A Kenya Pipeline Company fuel reservoir.
Photo
KPC
The government is selling 11.81 billion shares, representing 65 per cent of KPC, at Ksh9 each, targeting to raise Ksh106.3 billion for infrastructure development and debt reduction.
COFEK’s concerns centre on potential irregularities in the regional investor allocation, in which local elites could allegedly masquerade as Ugandan investors to secure preferential access to shares.
COFEK’s argues that this would deny ordinary Kenyans fair access to the shares while allowing well-connected individuals to benefit from the public asset sale through backdoor arrangements that undermine transparency.
President William Ruto has previously responded to those opposed to the sale of KPC shares, such as Kiharu Member of Parliament Ndindi Nyoyo, who asserts that Kenyans risk losing billions in the deal in which powerful government officials plan to disguise themselves as foreign investors to grab shares in KPC.
Speaking at the Vijana Uongozini Event in Embu on January 28, the legislator warned that certain individuals intend to purchase shares while pretending to be Ugandan investors.
According to the IPO structure, 60 per cent of shares are reserved for Kenyan investors, 20 per cent for foreign investors, and 20 per cent for regional investors.
Nyoro argues that it is within this 20 per cent regional allocation that the alleged fraud could take place, claiming that local elites may pose as Ugandan investors to gain preferential access.
The sale of the KPC shares, according to President William Ruto, is one of his plans to raise the Ksh5 trillion Infrastructure Fund (IF) and the Sovereign Wealth Fund (SWF), a measure meant to position Kenya toward the “Singapore Status” he is eyeing for the nation.
KPC remains one of Kenya’s strategic state corporations, managing critical fuel transportation infrastructure that supplies petroleum products across the country and to neighbouring nations like Uganda.
The outcome of the February 19 court hearing will determine whether the privatisation proceeds as planned or gets suspended, affecting thousands of investors and the government’s revenue targets.
A collage of Kiharu MP Ndindi Nyoro (left), and President William Ruto.
Kenyans.co.ke
