Kenyan lawmaker Ndindi Nyoro has made explosive allegations against President William Ruto, claiming he used private entities and proxies to acquire a majority stake in the Kenya Pipeline Company (KPC). This follows a massive share transfer on the Nairobi Securities Exchange, where state-owned entities sold 4.5 billion KPC shares, valued at approximately Ksh42 billion, to a private investor. The transaction has sparked intense public scrutiny and debate.
According to Nyoro, President Ruto directly intervened by contacting CEOs of state agencies, including the National Social Security Fund (NSSF) and the Public Service Superannuation Scheme (PSSF), instructing them to purchase KPC shares during the Initial Public Offering (IPO) despite contrary advice from their financial experts. He alleged that the president later directed them to offload those shares to a private investor at a loss to public funds.
Nyoro claimed that the private investor is a company in which President Ruto has private interests. He argued that the transaction compromised public pension funds to benefit private interests. The Kiharu legislator stated that the shares were sold cum dividend, allowing the private investor to maximize benefits. The bank handling the transaction allegedly has ties to the president.
Nyoro linked the massive share transaction to President Ruto's commercial interest in the Dangote East Africa Petroleum Refinery in Lamu. He contends that acquiring control over midstream distribution assets like KPC aligns with expanding private interests across the regional petroleum supply chain.
President Ruto defended the share transfer during the Mashujaa Day celebrations in Eldoret, framing it as a vital move to mobilize private capital for national infrastructure projects. However, he did not disclose the identity of the private entity involved. Opposition figures and critics are calling for full disclosure of who ultimately owns the Ksh42 billion buyout.
Nigerian billionaire Aliko Dangote confirmed that he bought the 24.76 percent stake in Kenya Pipeline Company (KPC) for about Sh42.5 billion ($327 million). The investment gives him a share in the infrastructure that transports fuel across Kenya and to neighboring countries. Dangote announced the purchase at an event in London but did not specify which company in his business group acquired the stake.
The allegations have sparked controversy, with Nyoro and other critics demanding transparency in the transaction. The deal has raised concerns about the use of public funds and the potential benefits for private interests. The Kenyan government has not officially responded to Nyoro's allegations, but the opposition and other stakeholders are pushing for a full investigation into the matter.
Key points
- President Ruto allegedly used proxies to acquire a majority stake in Kenya Pipeline Company.
- The transaction has sparked controversy and demands for transparency.
- Nigerian billionaire Aliko Dangote confirmed that he bought a 24.76 percent stake in KPC.
