Kenya Pipeline Sale: Nyoro Questions Deal as Dangote’s Stake Could Rise to 75%

Fresh allegations by Kiharu MP Ndindi Nyoro have ignited a new debate over the future ownership and control of the Kenya Pipeline Company, raising questions about the government’s dealings with private investors and the interests surrounding one of Kenya’s most strategic state assets.

According to Nyoro, President William Ruto’s administration is pursuing a plan that could eventually transfer majority control of KPC to a private investor associated with Dangote East Africa Petroleum Refinery.

He alleges that the process began with public institutions selling a combined 24.76 percent stake in KPC to the private investor.

Nyoro claims the shares were sold at a loss, arguing that the transaction could ultimately disadvantage pensioners and other Kenyans whose interests are represented by institutions such as the National Social Security Fund and other public funds.

The legislator further alleges that the ultimate objective is to increase the private investor’s ownership to between 51 and 75 percent of KPC.

He claims this could happen through the compulsory or negotiated sale of additional shares held by public institutions, followed by a proposed rights issue.

Under the alleged plan, Nyoro says the government could decline to take up its allocation in the rights issue, citing lack of funds.

The unclaimed shares could then be acquired by the private investor, potentially significantly increasing its stake.

Uganda’s position could prove equally important.

Uganda has interests in the pipeline infrastructure and, according to the allegations, its decision on whether to participate in a rights issue could determine whether private ownership rises closer to 51–58 percent or potentially as high as 75 percent.

Such a development would have major implications for Kenya’s control of critical petroleum infrastructure.

KPC plays a central role in transporting and storing petroleum products, making its ownership structure a matter of national economic and strategic importance.

Nyoro is therefore calling for full disclosure of the shareholding structure of Dangote East Africa Petroleum Refinery and publication of the investment agreement underpinning the transaction.

The allegations have yet to be independently established.

However, they raise serious questions that deserve clear answers: Who ultimately owns the private investor?

What are the conditions of the investment agreement?

And could Kenya eventually lose effective control of a strategic national asset?

For Kenyans, transparency not political rhetoric will be the real test.

If the transactions are commercially sound and in the public interest, the government should have little reason to keep the details away from public scrutiny.

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