Former KEMSA chair Irungu Nyakera warns against Kenya Pipeline sale

Kemsa Board of Management Chairman Irungu Nyakeraduring a press conference on the Organizations turn around reports on the turn round reports at Embakasi Offices, on Wednesday, February, 21, 2024. [File, Standard]

Former KEMSA chairperson Irungu Nyakera has cautioned the government against its plan to sell a majority stake in the Kenya Pipeline Company (KPC).

Nyakera, referencing the 2007 privatisation of Telkom, when the government sold a 51 per cent stake to France Telecom for Sh26 billion, only for it to be bought back at a loss, stated: "KPC is not an ordinary parastatal," he said. "It controls the transportation and storage of petroleum products in Kenya. Selling it in a hurry poses immense risks, including ceding control of the country's energy backbone."

According to the former KEMSA boss, the government plans to sell 65 per cent of KPC at an estimated Sh120 billion, a figure he argues undervalues the strategic asset.

"That's the same amount Kenya could raise by selling just 10% of its Safaricom shares," he noted, urging protection of national interests.

Nyakera proposes that the state should not sell more than 50 per cent of the company, adding that if a majority sale proceeds, the government must retain a golden share.

"In a sector as strategic as energy, the government must maintain control or secure veto powers to protect Kenya's interests," Nyakera said.

His remarks add to the growing debate over how Kenya should balance urgent fiscal needs with long-term sovereignty over critical infrastructure.