Kiharu MP Ndindi Nyoro has escalated his criticism of the Kenya Pipeline Company (KPC) share transactions, alleging that state-backed institutions were pushed to invest in the firm and later instructed to sell their holdings to a private buyer, in a deal he claims exposed pensioners’ money to losses.
Nyoro renewed the accusations on Wednesday, October 21, in a statement posted on his X account, setting out his version of events days after his suspension from Parliament over the same claims. He accused President William Ruto of intervening in investment decisions made by public institutions and questioned the identity of the investor who acquired the shares.
The dispute centres on KPC’s initial public offering (IPO), which opened on January 19 and closed on February 24. The company was subsequently listed on the Nairobi Securities Exchange (NSE) on March 9.
The allegations have kept Nyoro at odds with the National Assembly leadership. On October 7, Speaker Moses Wetang’ula suspended the Kiharu MP for five sitting days after he refused to withdraw or substantiate claims that Ruto and other senior officials had pressured government agencies and pension funds to purchase KPC shares.
In his latest account, Nyoro alleged that the President personally contacted the chief executives of the National Social Security Fund (NSSF), Public Service Superannuation Scheme (PSSF), Unclaimed Financial Assets Authority and other institutions to secure their participation in the share offer.
“The President called the CEOs to buy KPC shares against the advice from their own professionals,” Nyoro alleged.
He claimed the institutions proceeded with the investments despite concerns raised by their own technical teams, and alleged that records were subsequently altered to support the decisions.
According to Nyoro, the institutions had to “forge minutes of Board meetings and backdate them”.
The claims have not been independently verified. Nyoro did not present documents in his statement to establish that the alleged pressure was exerted or that board minutes were falsified.
The MP further alleged that the same executives were later contacted and instructed to sell the shares to a private investor.
“He again called them last week instructing them to sell the shares to a ‘Private Investor’,” the MP stated.
Nyoro put the combined volume of shares sold by the institutions at 4.5 billion, saying the transactions raised approximately Sh42 billion. He added that NSSF had not yet completed its exit from the investment.
The legislator said the shares were sold at prices ranging from Sh9.02 to Sh9.36 each, which he argued were inadequate once the costs associated with the transactions and the time value of money were taken into account.
“Accounting for brokerage commission that is usually around 1.5 per cent, the entities sold shares at a loss,” Nyoro claimed.
He maintained that the institutions could have obtained better returns by keeping the money in bank deposits instead of investing in the KPC share offer.
The MP’s concerns focused on the potential consequences for pensioners and other beneficiaries whose funds are managed by the institutions. He argued that investment decisions involving such money should deliver reasonable returns rather than expose the funds to losses.
Nyoro also challenged the ownership of the company he described as the private investor, alleging that it had links to the President’s personal interests.
“The so-called private investor is a company that President William Ruto has private interests in,” Nyoro claimed.
He further alleged that the investment bank involved in the transaction belonged to Ruto, raising questions about whether the parties involved had competing interests in the share sale.
Describing the alleged arrangement, Nyoro said it amounted to the President taking “a soft loan from your pensions”.
He did not provide documentary evidence in his statement to independently confirm the alleged links between the President, the investor and the investment bank. The circumstances surrounding the share transactions also remain unverified based on the information he presented.
Nyoro extended his criticism to the proposed Lamu oil refinery involving Dangote East Africa Petroleum Refinery, arguing that questions over the project’s ownership and investment terms also required answers.
He questioned why details of the refinery’s shareholders and the agreement governing the investment had not been made public, suggesting that the lack of disclosure could conceal interests connected to powerful political figures.
“Why is the shareholders register a secret? Because the minority shareholders are led by the President of Kenya,” he stated.
The MP also alleged that the proposed investment agreement contained conditions that could limit Kenya’s ability to source petroleum products from alternative suppliers, even where imported products were cheaper.
“Among the conditions is that Kenya will not import any products made by the refinery even when the prices are double or triple the market price,” Nyoro alleged.
He argued that such a provision, if contained in the agreement and enforced, could require Kenya to buy products from the refinery even when international market prices were lower.
The legislator claimed the alleged arrangements could give Ruto influence across the petroleum value chain, covering upstream oil exploration, midstream refining and downstream fuel marketing.
By linking the KPC share transactions to the proposed refinery, Nyoro has broadened his criticism to include the transparency of major energy investments, the management of public funds and the ownership of companies operating in the sector.
His allegations of presidential intervention, losses from the share sales, private business interests and restrictive refinery terms have not been independently established in the statement.