Energy and Petroleum Cabinet Secretary Opiyo Wandayi has dismissed claims of possible mass job losses following the government's decision to privatise the Kenya Pipeline Company.
Wandayi, while appearing before the National Assembly's Energy Committee on Tuesday, August 12, assured legislators that employee welfare is protected under existing legal frameworks.
“We do not foresee any job losses or any restructuring to the current job structures at KPC,” said Wandayi.
This is after the lawmakers raised concerns over the fate of KPC employees amid fears that the privatisation could trigger restructuring and possible job losses.
In particular, Gem MP Elisha Odhiambo claimed that many KPC staff were anxious about the proposed changes but were hesitant to voice their concerns for fear of victimisation.
“Most KPC employees are afraid to speak openly, but the true position is that they are distressed by the proposal,” Elisha revealed.
Under the plan, the government, through the National Treasury, intends to retain a 35 per cent stake in KPC while offering 65 per cent of the shares to the public through the Nairobi Securities Exchange (NSE).
However, the committee members expressed doubts over how the government decided to sell a majority stake in the strategic company, which they claimed was a critical national asset.
The lawmakers accused the Treasury of running an opaque process, noting that the committee has yet to receive the company’s valuation report.
They insisted that a comprehensive valuation of KPC and its assets should be made public to establish the true worth of the company.
Meanwhile, the latest move comes a week after the Cabinet approved the privatisation of KPC to enable the private sector and industry experts to drive growth, efficiency, and innovation in the company.
While KPC has been a strategic player in Kenya's energy supply chain, the Cabinet noted that the company had not yet reached its optimum performance and market value, largely due to bureaucratic constraints.
