From 24.76% to 75%: Nyoro Claims Kenya Pipeline Could Face Major Ownership Changes

Kiharu MP Ndindi Nyoro has alleged that President William Ruto’s long-term plan is to secure majority ownership of the Kenya Pipeline Company (KPC).

In a statement posted on social media on Wednesday, October 21, Nyoro claimed that the sale of a 24.76% stake in KPC to interests associated with Nigerian billionaire Aliko Dangote was the first step towards a wider change in ownership.

Nyoro estimated that the plan could result in private investors controlling between 51% and 75% of the company. However, the alleged takeover plan has not been independently verified.

The MP claimed that public institutions holding KPC shares had been directed to sell their stakes to a private investor after purchasing shares during the company’s initial public offering.

He argued that the transactions could disadvantage pensioners if the institutions sold their shares at a loss after accounting for transaction costs.

“Pensioners lost money for President William Ruto to make money,” Nyoro claimed.

The allegation has not been independently established. Determining whether the institutions made losses would require details of their purchase prices, dividends and transaction costs.

Nyoro identified a possible rights issue as another stage of the alleged plan.

A rights issue allows existing shareholders to buy additional shares. If some shareholders do not participate, their ownership percentages may decline as other investors acquire more shares.

The MP claimed that the government could decline to purchase additional shares, citing a lack of funds, giving private investors an opportunity to increase their stake.

He also argued that Uganda’s decision to participate in a future rights issue could influence the final ownership structure.

Nyoro estimated that private investors could eventually control between 51% and 58% of KPC if Uganda declined to participate, with the stake potentially rising to about 75% if Uganda took part.

These projections remain Nyoro’s claims, and no verified details provided in the report establish that such a rights issue or ownership arrangement has been agreed upon.

The MP called for the publication of the ownership details of Dangote’s investment vehicle and agreements relating to the proposed Lamu refinery project.

He also questioned whether government officials involved in the negotiations had conflicting interests in the transaction.

President Ruto has defended the KPC share transfer as a way of attracting private investment for strategic infrastructure. However, his public remarks cited in the report do not confirm the further takeover plan alleged by Nyoro.

The key issues raised include the identity of the purchasing entity, the financial returns received by selling institutions and whether future transactions could change the balance between public and private ownership of KPC.

https://peopledaily.digital/news/nyoro-rutos-end-plan-is-to-take-over-kenya-pipeline-majority-shares

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