24/11/2025
Friends — we need to talk about the Kenya Pipeline Company (KPC) and the government’s plan to invite Uganda to co-own it.
A bit of context: KPC was established in 1973 and began commercial operations in 1978 as a state corporation to transport and store refined petroleum products from Mombasa into the country. For decades it has been a strategic, state-owned lifeline for our fuel security and distribution in Kenya.
The state is moving KPC into a privatization program — planning an IPO and divestment of a large shareholding (reports suggest up to 65% will be opened up to investors), and President Ruto has publicly invited Uganda to buy into KPC as part of deeper cross-border infrastructure integration.
Why this is dangerous you ask???
Strategic infrastructure = national security.
Losing controlling ownership of a major fuel transmission network to external interests (even a neighbouring state) weakens Kenya’s ability to make sovereign decisions during crises — price shocks, supply disruptions, or geopolitical pressure. Decisions about who gets priority fuel, when, and how can no longer be purely Kenyan. This isn’t abstract — it’s about who controls the tap.
Political leverage and regional bargaining. Co-ownership with another sovereign state imports regional politics directly into our energy sector. Uganda and Kenya don’t always see eye to eye on trade, transit or taxes; when tensions flare, fuel access could be used as leverage. The optics of a neighbour holding a big slice of our pipeline is not “integration” — it’s shared vulnerability.
Transparency, corruption and rent capture. Privatization and cross-border deals have historically been fertile ground for opaque deals and cronies. Opening 65% for sale — if done hastily and without robust guardrails — risks selling off public value to insiders or politically connected buyers rather than securing real, competitive investment for the public good.
This will has significant economic consequences for ordinary Kenyans. Privatize then import shared-ownership — and you may soon see higher downstream costs, less control over pricing, and fewer guarantees that domestic supply comes first when global prices spike. The public must not be left subsidizing an ownership transfer that benefits a few.
What the government MUST do (non-negotiable minimums):
• Publish the full privatization plan, bidders list, and timing — immediately. No secrecy.
• Preserve a clear Kenyan controlling stake or golden-share mechanisms that guarantee national control over allocations and emergency powers.
• Insist on full transparency, competitive international tendering, public audits and parliamentary oversight before any sale, and rigorous security protocols for cross-border operations.
This isn’t an anti-regional-cooperation rant — East African integration can work — but strategic assets must be handled with ruthless clarity: national interest first, not political photo-ops or quick cash grabs. If we don’t demand clarity now, we will be stuck paying the bill — literally and politically — later.
Share this if you want Parliament and the people to see the plan before it’s sold. We must know the terms, the buyers, and the safeguards — not be told after the ink is dry. ✊