Kiharu MP Ndindi Nyoro has made fresh allegations over the sale of Kenya Pipeline Company (KPC) shares, claiming that public institutions sold 4.5 billion shares worth approximately KSh42 billion to a private investor at a loss.
In a statement issued on Wednesday, October 21, Nyoro alleged that President William Ruto had directed the chief executives of public institutions to buy KPC shares during the company’s initial public offering (IPO) before instructing them to sell their holdings to a private investor.
Nyoro claimed the transactions exposed pensioners’ savings to losses and questioned the identity of the investor, whom he alleged had private interests linked to the President.
He also alleged that the investment bank involved in the transaction was owned by Ruto and described it as a newly licensed investment bank.
“The other week, I was suspended from Parliament for stating the obvious. That the Kenya Pipeline IPO was a failure, subscription being below 3% at the last day of the IPO. And that President William Ruto called the CEOs of NSSF, PSSF, Unclaimed Assets, CPF, and others to risk Pensioners savings against professional advise,” stated Nyoro.
Nyoro Claims Public Institutions Sold KPC Shares at a Loss
According to Nyoro, the institutions sold about 4.5 billion KPC shares, raising about KSh42 billion, while the National Social Security Fund (NSSF) had not yet completed its exit from the investment.
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He claimed the shares sold at prices ranging from KSh9.02 to KSh9.36 each.
Nyoro argued that the institutions incurred losses after accounting for brokerage commissions, which he estimated at about 1.5 per cent, and the time value of money.
He further claimed that the shares were sold on a cum-dividend basis, meaning the buyer would also benefit from the dividend attached to the shares.
The MP said the funds invested by the public institutions could have earned better returns if they had been placed in bank deposits instead.
Claims of Presidential Pressure on Pension Funds
Nyoro alleged that Ruto called the chief executives of NSSF, the Public Service Superannuation Fund (PSSF), the Unclaimed Financial Assets Authority, and the County Pension Fund (CPF), among other institutions, and directed them to buy KPC shares.
He claimed the executives acted against advice from their professional teams and alleged that board meeting minutes had been forged or backdated to support the purchases.
The legislator further claimed that the same executives later received instructions to sell the shares to a private investor.
He warned that public institutions could transfer more KPC shares to private investors, with NSSF still holding some of its shares.
Nyoro Links KPC Transaction to Dangote Refinery
The Kiharu MP also linked the share transactions to the proposed Dangote East Africa Petroleum Refinery in Lamu, alleging that the sale was connected to conditions attached to the refinery investment.
He questioned why the refinery’s shareholders register and investment agreement had not been made public.
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Nyoro alleged that Ruto had private interests in the refinery and claimed the investment agreement contained a provision barring Kenya from importing petroleum products manufactured by the refinery, even if their prices were two or three times higher than market prices.
He further argued that the alleged interests would give the President a stake across different parts of the oil industry, from upstream exploration to refining and downstream petroleum marketing.
Why Ndindi Nyoro Was Suspended from Parliament
Nyoro’s statement comes two weeks after National Assembly Speaker Moses Wetang’ula suspended him from parliamentary business for five sitting days over his remarks about Kenya Pipeline Company shares.
On October 7, Wetang’ula ruled that the Kiharu MP would be excluded from parliamentary proceedings after he declined to withdraw his allegations and apologize, despite being asked to provide evidence to support his claims.
The dispute arose after Ndindi Nyoro claimed that public institutions were pressured to buy shares in Kenya Pipeline Company (KPC) during its initial public offering. The Speaker challenged him to provide evidence to support the allegations and gave him an opportunity to present the proof before the House.
Nyoro requested two more weeks to present the evidence but maintained that he would not apologize for his remarks.
“I respectfully ask you to exercise your authority, but I cannot apologize for saying the truth,” Nyoro told the Speaker.
Wetang’ula rejected the request for more time, saying the allegations had already been expunged from the official records of the House and that Nyoro needed to apologize before he could resume parliamentary business.
The Speaker clarified that the punishment would not prevent the MP from entering Parliament altogether but would bar him from participating in debates, motions and other House business during the five sitting days.
Wetang’ula cited parliamentary rules governing the conduct of members and warned that the House had to uphold its standing orders.
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