A letter has been sent to several investigative, oversight and accountability agencies seeking investigations into alleged fraud, unlawful payment of public funds, conflict of interest and other integrity concerns surrounding the Kenya Pipeline Company (KPC) initial public offering (IPO) transaction.
The complaint, filed by advocate Kennedy Oduor Wanyanga on behalf of his client Kelvin Omondi, has been copied to the Ethics and Anti-Corruption Commission (EACC), Directorate of Criminal Investigations (DCI), Commission on Administrative Justice, Law Society of Kenya, Assets Recovery Agency, Parliamentary Accounts Committee and other offices.
The advocate wants the agencies to investigate allegations contained in documents, correspondence, bank statements and communications said to be in his client's possession, and prosecute anyone found culpable while recovering any public funds or assets established to have been unlawfully acquired.
Among the issues raised is an alleged conflict of interest involving Lawrence Kibet, Director General for Public Investment and Asset Management at the National Treasury, and Image Registrars Limited, a company he previously headed.
The complaint alleges that the company later received a contract linked to the KPC IPO transaction.
The letter also questions the appointment of Dr Janerose Omondi as Acting Chief Executive Officer of the Privatisation Authority in June 2025, arguing that the appointment and its subsequent extension require scrutiny under Chapter Six of the Constitution and public-sector governance requirements.
The complaint further alleges irregularities in the procurement of transaction advisory and share-registry services, including changes to the terms of reference after publication, which it claims may have disadvantaged some bidders and favoured a predetermined bidder.
Other concerns include the composition and conduct of tender evaluation committees, alleged solicitation of money from transaction advisers and possible inflation of transaction-advisory costs.
A major issue raised is an alleged increase in the budget for KPC IPO transaction-advisory services from KSh200 million to KSh350 million without the required approval.
The complaint calls for the increase to be examined against the Public Finance Management Act, procurement laws and the approvals governing the IPO.
The letter also raises questions about the contract awarded to Faida Investment Bank, including alleged discrepancies between the tax treatment in the tender documents and the final contract.
According to the complaint, the advisory arrangement included a one per cent success fee and a 1.5 per cent placement fee.
Based on the stated IPO proceeds, the advocate estimates that the fees and related taxes could amount to approximately KSh2.918 billion.
The complainant further alleges that approximately KSh12.848 billion in bids attributed to the lead transaction adviser had not been honoured by the relevant payment deadline.
Investigators have been asked to establish whether shares linked to the allegedly unpaid bids were nevertheless accepted, allotted or credited to investors' Central Depository and Settlement Corporation (CDSC) accounts.
The complaint estimates that the disputed amount could have implications for placement and success fees and alleges a potential loss of more than KSh321 million.
It calls for scrutiny of bid records, payment records, IBGs, CDSC accounts and bank statements.
The letter also questions the subscription rate publicly communicated during the KPC IPO, arguing that a distinction may exist between bids initially recorded and those ultimately funded and settled.
The complainant wants authorities to establish whether the publicly reported subscription figures accurately reflected genuine and ultimately funded demand.
The advocate has attached documents including correspondence involving Image Registrars and the Privatisation Authority, the consultancy agreement between Faida Investment Bank and Rock Advisors, a business valuation report, bank statements, the lead transaction-adviser contract, WhatsApp messages and email communications.
The agencies have been asked to jointly or independently investigate the allegations, establish whether public funds were unlawfully paid or lost, identify any persons who may have benefited and pursue recovery of any funds or assets found to have been unlawfully obtained.
The allegations contained in the complaint have not been independently verified, and the persons and entities mentioned have not been found culpable by a court.
