The government’s plan to offload a 65% stake in the Kenya Pipeline Company (KPC) for an estimated Ksh 120 billion has drawn sharp criticism from former KEMSA board chair and Nairobi gubernatorial aspirant Irungu Nyakera. In a strongly worded social media post, Nyakera warned that the proposed sale could repeat costly mistakes from Kenya’s past privatizations.
Nyakera compared the KPC proposal to the 2007 privatization of Telkom Kenya, where the government absorbed Ksh 40 billion in debt and injected another Ksh 10 billion before selling 51% of the company to France Télécom for just Ksh 26 billion. He noted that Telkom eventually collapsed, forcing the government to buy it back at a loss. “We lost money and control of a strategic asset,” Nyakera lamented, saying the same fate could befall KPC if the sale proceeds without careful consideration.
He stressed that KPC is not just another state corporation but a vital national utility, holding a monopoly over the transportation and storage of petroleum products. According to Nyakera, its strategic importance makes the proposed valuation questionable and the decision to sell a controlling stake “reckless.” He further argued that the estimated Ksh 120 billion could easily be raised by selling a much smaller 10% stake in a company like Safaricom, without endangering the nation’s energy security.
Nyakera cautioned that selling a majority share could “hand over our energy lifeline to private or foreign interests,” compromising Kenya’s ability to safeguard critical fuel infrastructure. As a potential governor of Nairobi — a city whose economy depends heavily on stable fuel supply — he emphasized that control over KPC is a matter of national security and economic stability.
As an alternative, Nyakera urged the government to sell only a minority stake and retain control. If a majority sale becomes unavoidable, he proposed adopting a “Golden Share” structure — a mechanism that gives the state veto powers over any ownership or operational changes that threaten national security or public interest.
“The government must be patient and strategic,” Nyakera concluded. “We cannot afford to trade away our sovereignty for short-term revenue.”
His warning serves as a reminder that Kenya’s privatization agenda should prioritize national stability and strategic autonomy over immediate financial returns.
