Kiharu Member of Parliament Ndindi Nyoro has alleged that public institutions were pressured into buying Kenya Pipeline Company (KPC) shares before being directed to sell billions of shillings worth of the stock to a private investor with alleged links to President William Ruto.
In a statement shared on Wednesday, October 21, Nyoro claimed that the institutions sold approximately 4.5 billion shares valued at about KSh42 billion, raising questions about the management of public funds and the identity of the buyer.
The legislator alleged that Ruto had summoned the chief executives of the National Social Security Fund (NSSF), Public Service Superannuation Fund (PSSF), Unclaimed Financial Assets Authority and other institutions to encourage them to invest in the KPC initial public offering (IPO), despite objections from their professional teams.
Nyoro further claimed that board meeting minutes were forged and backdated to justify the investments, allegations that have not been independently established.
He also alleged that the same executives were later instructed to sell their holdings to a private investor, with the transactions completed at prices ranging between KSh9.02 and KSh9.36 per share.
According to Nyoro, the shares were sold with dividend rights attached, allowing the buyer to benefit from the dividends associated with the stock.
The MP argued that brokerage commissions and the time value of money could mean the institutions incurred losses on the transactions, potentially affecting pensioners whose savings were invested in the company.
He described the transaction as a form of financing for the unidentified investor using pension funds, claiming that the buyer stood to benefit while the institutions bore the financial risk.
Nyoro also alleged that the investment bank involved in the transaction had links to the President and questioned the circumstances under which it had been licensed.
The claims come after reports that state-linked institutions sold a combined 24.76 per cent stake in KPC, valued at approximately KSh42.5 billion, to an unidentified foreign investor less than eight months after acquiring the shares during the company’s IPO.
The MP further linked the share transaction to the proposed Dangote East Africa Petroleum Refinery in Lamu, alleging that it formed part of the conditions associated with the project.
He questioned why the refinery’s shareholder register and investment agreement had not been made public, claiming that the documents could reveal private interests and arrangements affecting Kenya’s petroleum market.
Nyoro alleged that the agreement could restrict Kenya from importing petroleum products manufactured by the refinery, even if their prices were significantly higher than prevailing market rates. The claim has not been independently verified.
The controversy follows Nyoro’s suspension from Parliament earlier in October after he refused to withdraw or apologize for allegations that public institutions had been pressured to invest in the KPC IPO.
The identity of the private investor and the alleged links to the President remain central questions surrounding the transaction.
The allegations have not, by themselves, established wrongdoing by the President or the institutions involved. Responses from the State-linked funds, the investor, the investment bank and the Presidency would be necessary to establish their accounts of the transaction.
