Omtatah, two others file petition to stop privatisation of KPC

A constitutional petition has been filed at the High Court seeking to stop the proposed privatisation of Kenya Pipeline Company Limited (KPC) and other strategic State-owned enterprises.

The petition was filed on January 2, 2026, by Busia Senator Okiya Omtatah, alongside Bernard Muchiri Muchere and Naomi Nyakerario Misati.

It challenges the government’s plan to divest a 65 per cent stake in KPC through an Initial Public Offering (IPO) reportedly targeted for March 2026.

In the petition, the applicants argue that the proposed privatisation process does not comply with constitutional and statutory provisions governing the management and disposal of public assets.

They contend that KPC, which is currently fully State-owned, is a strategic entity whose proposed sale raises constitutional questions that require judicial scrutiny.

According to the petitioners, in the 2024 financial year, KPC reported profits of Sh6.87 billion and remitted Sh7 billion in dividends to the National Treasury, figures they cite to underscore the company’s financial performance.

The petition further argues that the proposed disposal of KPC, without what the applicants describe as strict adherence to constitutional requirements, raises concerns related to public finance management, energy security, collective ownership, and intergenerational equity.

Among the issues raised for determination by the court are whether there was adequate public participation in the privatisation process, whether the process meets transparency and accountability standards, and whether the Privatisation Commission acted within its legal mandate.

The petition also questions the use of policy instruments, rather than substantive legislation, to obtain parliamentary approval for the proposed transaction.

The petitioners are asking the court to declare the privatisation process unconstitutional, nullify decisions and notices related to the proposed sale, and issue orders restraining any further steps toward the privatisation of KPC.

They state that the case has been brought in the public interest, without any claim for compensation or costs, and to safeguard constitutional principles and protect public assets for current and future generations.

Separately, on October 9, 2025, the Privatisation Commission issued a notice announcing the proposed privatisation of KPC, following Cabinet approval of the privatisation method.

The proposal was subsequently tabled before the National Assembly by the Cabinet Secretary for the National Treasury and Economic Planning and approved by the House on October 1, 2025.

In a statement signed by Privatisation Commission Chairman Faisal Abass, the Commission said the notice was issued pursuant to Section 30 of the Privatisation Act, 2005, which requires formal notification of approved transactions.

“Following the approval of the privatisation method for the Kenya Pipeline Company (KPC) Limited by the Cabinet, and the approval thereof by the National Assembly on October 1, 2025, the Privatisation Commission hereby gives notice of the approved transaction,” the notice stated.

The Commission said the proposed sale is intended to support broader policy objectives, including raising funds provided for in the 2025/2026 national budget to finance economic and social programmes.

 

by PERPETUA ETYANG

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