Kenyans risk losing billions of shillings through a covert scheme to hijack the sale of Kenya Pipeline Company (KPC) shares, Kiharu MP Ndindi Nyoro has warned, raising fresh concerns over transparency and insider influence in the government’s privatization drive.
Nyoro alleges that powerful local elites are planning to disguise themselves as foreign investors to capture a significant portion of KPC shares, effectively locking out ordinary Kenyans while consolidating control of a strategic national asset.
According to the legislator, the scheme involves using Uganda-based proxies to bypass safeguards intended to protect local investors.
The claims come as the government rolls out one of its largest privatization efforts, offering 11.81 billion KPC shares—representing 65 per cent of the company—through an Initial Public Offering (IPO) running from January 19 to February 19, 2026.
The shares have been priced at Ksh9 each, with the state targeting Ksh106.3 billion to finance infrastructure projects and reduce public debt.
Under the IPO structure, 60 per cent of the shares are reserved for Kenyan investors, 20 per cent for foreign investors, and 20 per cent for regional investors.
While authorities describe the allocation as balanced, Nyoro argues it creates a loophole that insiders are already positioning themselves to exploit.
Speaking at the Vijana Uongozini event in Embu on January 28, Nyoro said the regional investor category is the weak link.
He claimed that certain individuals within the Kenyan establishment intend to pose as Ugandan investors while remaining the true beneficiaries of the shares.
He described the plan as a proxy arrangement designed to defeat the spirit of public participation and fairness.
“You are allocating a large portion to regional investors and talking about Uganda,” Nyoro said. “We know it is people in the government of Kenya who want to buy these shares in that name.”
Nyoro warned that such practices undermine trust in capital markets and disadvantage retail investors who follow the rules.
He also cautioned that cartel-driven ownership of KPC could expose the country to long-term risks, given the company’s role in fuel transportation and national energy security.
Beyond ownership concerns, Nyoro questioned the structure of the listing itself.
He warned that poorly designed privatizations often result in an initial surge followed by a sharp price correction, leaving ordinary Kenyans holding depreciated shares while insiders exit early with profits.
President William Ruto has dismissed Nyoro’s claims, branding them political deceit. He has defended the privatization agenda as a cornerstone of his administration’s economic strategy, aimed at raising up to Ksh5 trillion for the National Infrastructure Fund and the Sovereign Wealth Fund.
Ruto has framed the KPC sale as part of his vision to transform Kenya into a first-world economy through large-scale infrastructure investment.
Despite the government’s defense, the sale has attracted legal challenges. Opposition leaders, including Wiper Party leader Kalonzo Musyoka and People’s Liberation Party leader Martha Karua, have moved to court, arguing that the process lacks transparency, adequate public participation, and proper valuation.
With the courts now examining the legality of the sale, the KPC IPO has become a major test of governance and accountability.
Nyoro has welcomed judicial scrutiny, urging Kenyans to remain vigilant and demand clarity on who ultimately benefits from the privatization.
As the IPO window narrows, the stakes continue to rise. Whether Nyoro’s warnings prove accurate or not, the battle over KPC shares has exposed deep anxieties about trust, equity, and the future of public assets in Kenya.
