Opposition Vows Legal Battle Over Kenya Pipeline Privatisation After Tense National Assembly Approval

In a charged session marked by protests and walkouts, the National Assembly has greenlit the privatisation of the Kenya Pipeline Company (KPC), prompting fierce backlash from opposition lawmakers who promise an immediate court challenge. Critics decried the process as rushed, secretive, and devoid of public input, labeling it a betrayal of national interests.

The approval came on Wednesday through a motion endorsing the Sessional Paper on KPC's privatisation alongside the Public Privatisation Bill. Tensions boiled over as opposition-aligned members staged a dramatic walkout, accusing the House leadership of slipping the item onto the agenda without adequate warning. They pointed to a late addition to the supplementary Order Paper after 3:00 pm, which they claimed breached parliamentary Standing Orders requiring prior notification to all members.

Deputy Minority Leader Robert Mbui, representing Kathiani, led the charge against what he called a blatant ambush. He portrayed the decision as an outright sale of a vital national asset in broad daylight, insisting that such a weighty issue demanded thorough scrutiny rather than hasty passage. Mbui emphasised that the lack of transparency undermined the legislative process and vowed that his faction would seek judicial intervention to halt the sale.

Echoing these sentiments, Finyula MP Dr Wilberforce Oundo slammed the initiative as fundamentally flawed, designed to enrich a select few while impoverishing ordinary Kenyans. He argued that the entire framework skewed benefits toward insiders, leaving the public to bear the long-term costs of diminished state control over a key energy infrastructure player.

Concerns extended beyond procedural lapses to broader economic risks. Kiharu MP Ndindi Nyoro cautioned that the privatisation could trigger volatility in the Nairobi Securities Exchange (NSE), predicting a sharp drop in share prices once investors realise they are chasing short-term revenue streams rather than stable assets. He highlighted the timing, noting that full-year financial disclosures in February could expose underlying weaknesses, leading to a market tumble.

Public exclusion emerged as a recurring theme in the dissent. Kajiado North MP Onesmus Ngogoyo questioned who had been consulted in the lead-up to the decision, stressing that ordinary citizens deserved a voice in the fate of KPC. He raised alarms about the company's reported debt exceeding Sh5 billion, wondering aloud who would shoulder that burden post-privatisation. Ngogoyo branded the move as outright deception orchestrated at the highest levels, in flagrant disregard for legal safeguards.

Kigumo MP Joseph Munyoro added that the session stifled genuine debate, with opposition voices systematically sidelined. He called for judicial arbitration to rectify the imbalance and urged the House to uphold equal footing for all lawmakers in future deliberations. Meanwhile, Matungulu MP Stephen Mule probed deeper into the financials, challenging the opaque valuation of KPC and demanding clarity on how its worth had been assessed amid ongoing liabilities.

On the other side of the aisle, government supporters hailed the privatisation as a forward-thinking step to unlock value from state-owned enterprises. National Assembly Majority Leader Kimani Ichung'wah defended the motion vigorously, framing it as an inclusive investment vehicle that would democratise ownership. He outlined the proposal's structure: offloading 65 percent of the government's stake via an initial public offering (IPO), while retaining 35 percent to preserve state influence. No single buyer, he assured, could dominate the open market, ensuring continued public sector oversight.

Ichung'wah painted a rosy picture of the benefits, including bolstered corporate governance, streamlined operations, and higher profitability. He positioned the IPO as a rare chance for everyday Kenyans to build wealth, encouraging citizens to begin saving now for what he described as a prime opportunity. Broader fiscal relief was another selling point; by monetising stakes in profitable entities like KPC, the government could fund critical infrastructure and services without leaning so heavily on tax revenues, he explained. This approach, he noted, aligned with public calls for innovative funding mechanisms beyond traditional taxation.

The Public Privatisation Bill, now advancing to its second reading, incorporates lessons from a 2023 High Court ruling that struck down a prior version for insufficient stakeholder engagement. Proponents argue it now embeds public participation as a statutory requirement, addressing past shortcomings and paving the way for smoother implementation.

As the dust settles from Wednesday's showdown, the privatisation saga underscores deepening rifts in Kenyan politics. With opposition forces mobilising for the courts, the fate of KPC hangs in the balance, potentially reshaping the nation's energy sector and testing the boundaries of parliamentary accountability. Legal experts anticipate a swift petition, which could delay or derail the process, forcing a reckoning on transparency in asset disposals. For now, the government's push signals a broader privatisation agenda, but at what cost to public trust remains the burning question.