Nyakera Warns Against Rushed Sale of Kenya Pipeline Company

 

 Incoming Nairobi Governor Irungu Nyakera has cautioned the government against rushing the privatization of the Kenya Pipeline Company (KPC), warning that the move could repeat past mistakes that cost taxpayers billions and jeopardized control of strategic national assets.

Nyakera drew parallels to the 2007 privatization of Telkom Kenya, where the government wrote off KSh 40 billion in debt and injected an additional KSh 10 billion to revive the firm, only to sell a 51 percent stake to France Télécom for KSh 26 billion. Within a few years, Telkom collapsed, forcing the state to buy it back at a significant loss.

“We lost money and control of a strategic asset,” Nyakera said. “Now we seem to be walking down the same road with KPC.”

The government is reportedly seeking to sell a 65 percent stake in KPC for about KSh 120 billion — an amount Nyakera notes could be raised by selling just 10 percent of Safaricom shares.

“KPC is not an ordinary company. It holds monopoly status in transporting and storing fuel in Kenya. Selling it in haste risks handing over our energy lifeline to private or foreign interests,” he cautioned.

Nyakera urged the government to take time and ensure KPC is sold “at the right moment and at the right price.” He added that any privatization should not exceed 50 percent ownership, and if a majority stake must be sold, the state should retain a golden share — a mechanism that gives government veto power over ownership or asset changes that could threaten national security or public interest.

“Just as Margaret Thatcher did when Britain privatized BP in the 1980s, Kenya should protect its vital assets with a golden share,” Nyakera said.