The Kenya Petroleum Oil Workers Union has petitioned the Capital Markets Authority (CMA) over what it describes as serious corporate governance irregularities at Kenya Pipeline Company (KPC) regarding the recruitment of the company’s Managing Director and Chief Executive Officer.
In a letter dated May 15, 2026, signed by National General Secretary George Okoth, the union accused the current KPC board of proceeding with the recruitment process before the company’s board was properly reconstituted following its transition from a public company to a private company.
The union argued that the governance structure and board composition should first be aligned with the current shareholding structure in accordance with the Companies Act, 2015, corporate governance principles, Capital Markets Authority guidelines, and the company’s Articles of Association.
“The Company recently transitioned from a public company to a private company following changes in its shareholding structure. Consequent to this transition, understanding that the governance framework and board composition ought to be reconstituted to accurately reflect the current ownership and shareholder interests in accordance with our The Companies Act, 2015 The principles of good corporate governance Applicable Capital Markets Authority guidelines and governance codes, and The Company’s Articles of Association,” read the letter in part.
“However, before undertaking a lawful and proper reconstitution of the Board to reflect the present shareholding structure, the current Board proceeded to advertise the position of Managing Director/Chief Executive Officer.”
Kenya Petroleum Oil Workers Union Petitions CMA Over KPC CEO Recruitment
According to the petition, the board may lack the legal mandate to undertake strategic executive appointments because it allegedly does not accurately reflect the prevailing shareholder structure.
“The current Board may no longer validly represent the prevailing shareholder structure and therefore may lack the requisite authority to undertake strategic executive appointments on behalf of the Company,” the letter states.
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The union further warned that proceeding with the recruitment before regularising the governance structure undermines transparency, accountability, legitimacy, and fiduciary responsibility expected under accepted corporate governance standards.
The workers’ union also raised concerns over possible conflicts of interest among directors involved in the recruitment process. It claimed that some directors could have affiliations with previous shareholders, political interests, competing interests, or prospective candidates for the Managing Director position.
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According to the union, failure by directors to formally declare actual, potential, or perceived conflicts of interest could compromise the independence and integrity of the recruitment exercise.
The petition further warned that appointing a substantive Managing Director through what it termed a “disputed or transitional board” could expose the company to legal uncertainty, operational instability, and potential shareholder disputes.
Union Demands to CMA
The union has now asked the CMA to investigate the legality and propriety of the ongoing recruitment process and determine whether the current board is properly constituted and legally mandated to oversee the exercise.
It also wants the regulator to suspend or defer the recruitment process pending the proper reconstitution of the board, and to direct all incoming and continuing directors to formally declare conflicts of interest and recuse themselves where necessary.
The petition was also copied to the Registrar of Companies.
Kenya Pipeline Company directors placed an advertisement on May 7 seeking to recruit a new Managing Director and Chief Executive Officer, following the removal of former boss Joe Sang over a fuel scandal.
This also comes after a public notice in which the firm confirmed that two board directors, Sharon Irungu-Asiyo and Mohamed Birik Mohamed, have stepped down following regulatory changes tied to the firm’s new ownership structure.
Their exit follows the revocation of Kenya Pipeline’s designation as a National Government Entity after the privatization was concluded, as communicated through official gazette notices issued in April 2026.
