The Kenya Motorists Association (KMA) on Tuesday expressed interest in buying the state-owned Kenya Pipeline Company (KPC) which is estimated to have an asset base of Ksh130 billion.
In a statement, KMA Chairperson Peter Murima stated that collectively, members will raise the funds to meet the government’s valuation of KPC.
“Motorists should be able to do Harambee, we are doing calculations to see how much it would cost us to buy Kenya Pipeline,” Murima told Kenyans.co.ke.
The Chairperson noted that the company is strategic, especially for the transportation industry.
The body stated buying the company would be beneficial for Kenyan commuters as it would stop private investors from acquiring and turning the parastatal into a cash cow at the expense of public interest.
Murima stated that the distribution of fuel from Kipevu, Mombasa to all parts of the country largely depend on KPC and the government was making a huge mistake by planning to sell the company to private investors.
“As an Association, with the best interests of the consumers, it will remain quasi-public,” KMA submitted.
He further revealed that if members raise enough funds, the association will also bid to buy National Oil Corporation (NOC) and Kenya Vehicle Manufacturers Limited.
According to data from the National Treasury, KPC made Ksh3 billion profit after tax in the full year ended June 2022. As of the second half of 2022, KPC was valued at Ksh130 billion.
Despite KPC being a profitable company, the government is looking to privatise it on the basis that the company has developed monopolistic characteristics evidenced by a lack of competitors in the market.
KMA in its statement, however, disputed this position, stating that this was not the real reason behind the government's push to privatise such a key government parastatal.
“That monopoly is government. The government has its own institutions that make it a sovereign state,” Murima stated.
The announcement by KMA was made the same day that Azimio Leader Raila Odinga warned that privatising KPC would lead to increased fuel prices.
''They have recently announced their plan to sell state corporations, one of them is Kenya Pipeline Company, if it gets privatised, the fuel prices may go up 100 times,'' Raila warned.
''KPC is a strategic Corporation that should not be sold under any circumstances and that is what they want to do,''
