Ndindi Nyoro claims KPC share sale favoured 'private investor' at pensioners’ expense

Ndindi Nyoro claims KPC share sale favoured 'private investor' at pensioners’ expense

Ndindi Nyoro claimed institutions bought the shares against advice from their own professionals and alleged that minutes of board meetings were forged and backdated to support the purchases.

People’s Party of Kenya (PPK) leader Ndindi Nyoro has raised concerns over the sale of 4.5 billion Kenya Pipeline Company (KPC) shares worth approximately Sh42 billion, claiming that the transaction left public pension funds with losses while allowing a private investor to benefit from the deal.

The shares, sold through the Nairobi Securities Exchange (NSE), represent 24.76 per cent of KPC’s total stock. The transaction remained below the 25 per cent threshold that would have required approval from the Capital Markets Authority (CMA), while the identities of the ultimate buyers and sellers were yet to be publicly disclosed in the reported market information.

KPC began trading on the NSE on March 9 following a government-backed initial public offering (IPO) that raised approximately Sh112 billion against a target of Sh106 billion.

The government presented the listing as a way to expand public participation in strategic state-linked companies and strengthen Kenya’s capital markets. However, the scale of the transaction and the lack of publicly identified beneficial owners have raised questions over changes in KPC’s ownership structure.

In a statement, Nyoro questioned the circumstances surrounding the sale, alleging that public institutions had been directed to purchase KPC shares and later sell them to a private investor.

He claimed the institutions bought the shares against advice from their own professionals and alleged that minutes of board meetings were forged and backdated to support the purchases.

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“The President called the CEOs to buy KPC shares against the advice of their own professionals. They had to forge minutes of Board meetings and backdate them. All of them are liable,” Nyoro said.

Kenya Pipeline Company depot. (Photo: Courtesy)

He further alleged that President Ruto called the chief executives again the following week and instructed them to sell the shares to a private investor.

Nyoro said the institutions had cumulatively sold 4.5 billion shares, raising approximately Sh42 billion, although the National Social Security Fund (NSSF) was yet to complete its exit.

According to the Kiharu MP, the shares were sold at prices ranging from Sh9.02 to Sh9.36 each, with the transaction including dividend rights.

“The exit price was between Sh9.02 and Sh9.36. The shares were sold cum dividend so that the “Private Investor” maximises benefits,” he said.

The PPK leader argued that brokerage fees of about 1.5 per cent further reduced the proceeds, leaving the public institutions with losses. He added that the losses would be greater when the time value of money was considered, claiming that the funds could have earned better returns by keeping the money in bank deposits.

Nyoro also questioned the identity of the private investor, alleging that the company had private interests linked to Ruto and that the President was among the “Private Foreign Investors”.

“In other words, he took a soft loan from your pensions, you made a loss, but he is making money from it,” he said.

He further alleged that the investment bank handling the transaction was owned by the President and was newly licensed.

“The Investment Bank that handled the transaction is also owned by him. A newly licensed Investment Bank,” Nyoro said.

He linked the share transfer to conditions for the Lamu Refinery project, claiming that the transaction was closely connected to the refinery and that more KPC shares would be transferred from public institutions to private investors.

Nyoro also alleged that the transaction formed part of Ruto’s interests across the oil industry, from upstream activities, including Turkana oil, to midstream operations through the refinery and downstream activities involving G-G and other oil marketers.

Nigerian industrialist Aliko Dangote, left, with President William Ruto during the groundbreaking of Lamu refinery on September 30, 2026. (Photo: Ruto/X)

He raised further concerns over the investment agreement between Dangote East Africa Petroleum Refinery and Kenya, questioning why the shareholders’ register and the agreement had not been made public.

“Why is the shareholders register a secret? Because the minority shareholders are led by the President of Kenya,” he said.

He also questioned the secrecy surrounding the investment agreement, alleging that its terms amounted to a failure to protect the country’s interests.

“Why is the Investment agreement a secret? Because the content is pure abdication of duty and patronage. Among the conditions is that Kenya will not import any products made by the refinery even when the prices are double or triple the market price,” Nyoro said.

President William Ruto has, however, defended the transfer of the shares, saying it reflects growing confidence in Kenya’s capital markets and will help raise private funds for strategic infrastructure.

Speaking during the Mashujaa Day celebrations in Eldoret, Uasin Gishu County, on Tuesday, Ruto said the sale marked another step in efforts to attract private investment into key sectors of the economy.

“Just yesterday, in a demonstration of confidence in our growing capital markets, private investors acquired a 25 per cent stake in Kenya Pipeline from public entities, marking another step in mobilising private capital for strategic infrastructure,” Ruto said. “These developments will strengthen our energy sector, attract investments and create new opportunities for the Kenyan economy.”

The President did not identify the investors involved or provide further details about the terms of the transaction.

The latest share transfer comes as the government seeks to increase private-sector participation in infrastructure financing and find alternative sources of funding for economic development.