President William Ruto is on the receiving end of backlash over the planned sale of the Kenya Pipeline Company (KPC), in a move that will see the company's shares listed at the Nairobi Securities Exchange (NSE).
Just a day after the cabinet approved the company’s privatisation, the Motorists Association of Kenya (MAK) voiced its opposition to the move, noting it was a move that not only undermined public trust but also threatened Kenya’s most vital national asset.
In a statement released on Wednesday, July 30, MAK highlighted several flaws in the sale of KPC, which they described as the single most important public asset in the Republic of Kenya.
“The Motorists Association of Kenya (MAK) registers its strongest opposition to the decision announced yesterday by the Cabinet to privatise the Kenya Pipeline Corporation (KPC), a move that not only undermines public trust but also threatens Kenya’s most vital national asset,” MAK stated.
They cited the lack of Parliamentary debate, lack of public participation, and stakeholder engagement, adding that it was a violation of the Constitution. They further alleged a hidden agenda in the move, claiming that the shares would end up in the hands of a select few.
“The cabinet’s unilateral move to privatise KPC by floating shares to NSE without Parliamentary debate, public consultation, or stakeholder engagement is fundamentally flawed, undemocratic, and contrary to the principles of transparency and public participation enshrined in our Constitution. We know who will buy those shares. It's not the owners but profiteering privateers, foreigners, and well-connected locals,” MAK noted.
While emphasising the consumer role played by motorists in utilising KPC’s fuel and oil products, MAK argued that any decision on the company required the full input of the motorists and Kenyans as a whole.
”Motorists - comprising vehicle owners, operators, and drivers—are the consumers of over 99 per cent of KPC’s transported fuel and oil products. This makes them not only stakeholders but also natural stakeholders of the Corporation. Any decisions affecting the governance, ownership, or operations of KPC must include robust consultation with the motorists who fuel the economy, literally and figuratively,” MAK asserted.
To that effect, the Association demanded a full explanation but also a public apology over the sale of the Kenya Pipeline and called upon Kenyans to reject the privatisation agenda.
Nonetheless, the Cabinet’s approval follows a privatisation process that President William Ruto's government has been adamant is necessary to reduce the state's budgetary allocation to the corporations.
According to the dispatch, the privatisation of KPC would enable "the private sector and industry experts to drive growth, efficiency, and innovation."
To emphasise the need for privatisation, the cabinet cited previous cases, including the partial privatisation of KenGen, which transformed the company into a highly profitable business that expanded regionally.
Effectively, some of the government shares in KPC were set to be sold to private investors, and the company will be listed on the NSE, where Kenyans can buy shares and become part-owners of the lucrative company.
On July 23, President William Ruto hinted that privatisation of KPC was on the horizon after revealing that the government was planning to list the company’s shares on the Nairobi Securities Exchange by September 2025.
Besides KPC, the Kenya Literature Bureau (KLB), Rivatex East Africa, the National Oil Corporation (NOC), and the New Kenya Cooperative Creameries (NKCC) are other entities set to undergo privatisation soon.
