Kiharu MP Ndindi Nyoro has questioned the sale of approximately KSh 42 billion worth of Kenya Pipeline Company (KPC) shares by state-linked institutions to a private investor, alleging that political pressure influenced investment decisions involving pensioners’ savings. In a statement on October 21, 2026, Nyoro claimed the institutions sold about 4.5 billion shares at prices that resulted in losses after transaction costs, raising questions about accountability and the identity of the buyer.
Nyoro alleged that President William Ruto initially pressured the chief executives of several public institutions to purchase KPC shares during the company’s initial public offering (IPO), despite advice against the investment from their professional teams. He further claimed that the executives were subsequently instructed to sell their holdings to a private investor, alleging that some board meeting minutes were forged and backdated to justify the purchases. These allegations have not been independently established.
According to reports, state-linked institutions sold a combined 24.76 per cent stake in KPC to a foreign institutional investor. The transaction involved billions of shares and was valued at approximately KSh 42.5 billion, making it one of the significant share transactions recorded on the Nairobi Securities Exchange in October.
Nyoro said the shares were sold at prices ranging from KSh 9.02 to KSh 9.36 each, with the transaction including dividend rights. He argued that brokerage commissions, estimated at about 1.5 per cent, reduced the proceeds and could have left the institutions with losses when compared with their investment costs. The actual financial outcome for each institution would depend on its purchase price, transaction costs, dividends received and the precise terms of the sale.
The lawmaker also alleged that the private investor had undisclosed interests linked to the President and questioned the ownership of the investment bank that handled the transaction. These claims require independent verification, and the identity of the beneficial owner remains a central question surrounding the deal.
The controversy comes amid wider scrutiny of the proposed Dangote East Africa Refinery in Lamu. Nyoro has demanded disclosure of the refinery’s shareholder register and investment agreement, arguing that Kenyans should understand the ownership structure and the commitments made by the government. The planned refinery is designed to process up to 700,000 barrels of crude oil per day, according to project information and government announcements.
The dispute places renewed focus on transparency in public investment decisions and the management of retirement savings. Attention will now turn to whether the government, the institutions involved and relevant market authorities will disclose the transaction details, identify the buyer and clarify the financial implications for pension funds.
