Paul Muite Raises Red Flag Over Oversight as Government Launches KPC IPO
By Malticks - January 19, 2026
The government on Monday announced plans to offer 65 per cent of KPC shares to the public at the Nairobi Securities Exchange (NSE), marking one of the largest public listings in Kenya’s history.
The IPO, which opens on January 19 and closes on February 19, 2026, is expected to raise more than Ksh100 billion.
Reacting shortly after the announcement, Muite questioned how the proceeds from the sale would be managed.
Reacting shortly after the announcement, Muite questioned how the proceeds from the sale would be managed.
In a statement shared on social media, he argued that channeling the funds through infrastructure bonds could bypass parliamentary scrutiny and constitutional safeguards meant to protect public resources.
He warned that without strong oversight mechanisms, the money raised could be exposed to abuse.
According to government disclosures, the offer involves 11.8 billion shares priced at Ksh9 each, giving KPC an estimated market value of over Ksh160 billion.
According to government disclosures, the offer involves 11.8 billion shares priced at Ksh9 each, giving KPC an estimated market value of over Ksh160 billion.
Officials say part of the funds will be directed to the National Infrastructure Fund to support projects in roads, energy, water and airports.
Treasury officials have defended the move, describing it as asset optimisation rather than privatisation.
Treasury officials have defended the move, describing it as asset optimisation rather than privatisation.
They insist the government will retain a 35 per cent stake in KPC to safeguard strategic national interests, while allowing private investors to participate in the company’s growth.
The IPO has been structured to attract both local and international investors. Shares have been allocated across different categories, including local retail and institutional investors, regional and global investors, oil marketing companies, and KPC employees.
The IPO has been structured to attract both local and international investors. Shares have been allocated across different categories, including local retail and institutional investors, regional and global investors, oil marketing companies, and KPC employees.
Authorities say the offer will be fully electronic, a first of its kind in Kenya, and is intended to deepen the country’s capital markets.
Kenya Pipeline Company plays a critical role in the economy, operating a pipeline network stretching over 1,300 kilometres and handling more than 90 per cent of the country’s fuel imports.
Kenya Pipeline Company plays a critical role in the economy, operating a pipeline network stretching over 1,300 kilometres and handling more than 90 per cent of the country’s fuel imports.
The company has remained profitable, reporting revenues of over Ksh38 billion and a net profit exceeding Ksh10 billion in the last financial year.
Despite these strong financials, Muite’s concerns have added to growing public debate around the IPO.
Despite these strong financials, Muite’s concerns have added to growing public debate around the IPO.
Some critics argue that selling a controlling stake in such a strategic asset requires stronger transparency and accountability guarantees.
0 Post a Comment