President William Ruto’s plan to privatize the Kenya Pipeline Corporation (KPC) has suffered a blow after a petition was filed seeking to stop the entire process. Busia Senator Okiya Omtatah, Bernard Muchiri Muchere, and Naomi Nyakerario Misati filed a constitutional petition at the High Court seeking to block the sale of 65 per cent of its shares via an Initial Public Offering (IPO) scheduled for March 2026. This marks Ruto’s first legal battle of 2026, following a series of court cases in 2025.
The petition, filed on 2 January 2026, challenges the legality and constitutionality of the government’s proposed plan, arguing that it undermines national sovereignty and violates key principles of public finance and governance.
“The proposed privatisation is driven by external pressure from the International Monetary Fund (IMF) as a conditionality for loan facilities, which undermines Kenya’s constitutional sovereignty,” read the petition in part.
KPC Petition Cites Unconstitutional Process
According to the filing, the privatisation process is “unconstitutional, unlawful, and anti-sovereign” and has been driven by external pressure from the International Monetary Fund as a condition for loan facilities.
Furthermore, it cited a lack of public participation and transparency in the process, noting that approvals were sought through a Sessional Paper rather than proper legislative procedures.
The petition raised concerns over governance at KPC, pointing to “over KSh 97 billion in unaccounted retained earnings and depreciation funds” and irregular appointments at the Privatisation Commission, which the petitioners argue render the commission’s actions void.
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It stressed that the sale of KPC, a profitable state-owned asset, would violate public finance law and erode national energy security, collective ownership, and intergenerational equity.
KPC’s Importance
KPC is a fully government-owned entity and a critical part of Kenya’s energy infrastructure.
In 2024, the company posted profits of KSh 6.87 billion and remitted KSh 7 billion in dividends to the National Treasury.
The petition described KPC as a “strategic asset critical to national energy security” and argues that selling it to service public debt would compromise Kenya’s long-term interests.
Moreover, the petitioners contend that the proposed sale undermines constitutional principles, stating that IMF conditionalities “undermine Kenya’s constitutional sovereignty and violate the Constitution.”
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They further argue that failure to account for significant retained earnings at KPC constitutes a violation of public finance laws.
Court Orders Sought
Consequently, the petitioners are asking the High Court to declare the privatisation process unconstitutional and unlawful, quash all related decisions and notices, and issue a permanent injunction preventing any steps toward the sale of KPC or other strategic state-owned enterprises without full constitutional compliance.
The filing also sought conservatory orders to suspend the privatisation process pending the hearing and determination of the case.
The case has been filed as public interest litigation, with no claim for compensation or personal gain.
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