The planned privatisation of the Kenya Pipeline Corporation (KPC) has hit a roadblock as Senator Boni Khalwale opposed the sale of a 65 per cent government stake without proper public consultation.

Following a three-hour meeting with Energy Cabinet Secretary Opiyo Wandayi on August 15, 2025, Khalwale described the process as “foggy” and warned against proceeding without strict oversight.

“KPC is a national public security asset that is profit-making and owned 100% by the government. I was not persuaded that a 65% stake should be sold to private investors in a process that is foggy,” Khalwale said. He outlined conditions for the sale, emphasising that it must be transparent, allow credible public participation, and be subjected to thorough oversight by both the Senate and National Assembly.

Concerns over national security

Khalwale’s opposition is rooted in the potential loss of public control over an asset central to Kenya’s energy security. He warned that the National Treasury’s desire to raise Ksh100 billion to bridge the 2025/26 fiscal shortfall cannot justify privatisation that risks “irreversible loss of public control over strategic petroleum transport and storage infrastructure.”

Other legislators have echoed these concerns. Members of the Joint Committee on Energy and the Committee on Public Debt and Privatisation criticized the lack of clarity on KPC’s valuation and the takeover of Kenya Petroleum Refinery Limited (KPRL). Nakuru East MP David Gikaria stressed the need for detailed disclosure before any sale is approved. “What exactly are we selling if KPRL is not fully accounted for?” he asked.

Scepticism despite assurances

Despite assurances from Wandayi that there are no fiscal risks if the government remains a key shareholder and from Capital Markets Authority CEO Wycliff Shamiah that parliamentary approval will precede data collection, lawmakers remain wary. Concerns also include potential domination of shareholding by foreigners, with Uganda, a major KPC client, cited as a critical factor in ownership discussions.

KPC reported a Ksh10 billion profit in 2024 and a valuation of Ksh120.7 billion. Parliamentary committees are set to reconvene with the National Treasury and Attorney General’s office to ensure full transparency before any final decision on privatization is made.