Kenya Pipeline Company (KPC) petroleum storage facilities in Nairobi on August 21, 2024. [Kanyiri Wahito Standard]
The High Court in Nairobi has lifted the orders it issued last month stopping the sale of the Kenya Pipeline Company (KPC). Justice Bahati Mwamuye yesterday said he was convinced that Parliament should be allowed to consider the privatisation proposal first.
The judge said the Consumer Federation of Kenya (Cofek) and Petroleum Workers Union could move to court for a fresh freeze if their grievances would not be factored in by the legislators.
“The conservatory orders issued ex parte are hereby vacated,” he ruled.
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Cofek had sued the Attorney General and the Treasury Cabinet Secretary. It also cited KPC, the Capital Markets Authority, and the Nairobi Securities Exchange as interested parties.
The lobby group alleged that KPC is a strategic national asset, owning and operating the national petroleum pipeline and storage infrastructure, and hence cannot be handed to private entities without proper procedures and public participation.
The Stephen Mutoro-led federation alleged that KPC shares are being discreetly sold, despite the corporation being one of the most profitable entities for the government.
The judge heard that a transfer of a 65 per cent stake to private individuals would mean that Kenyans are losing out on the much-needed revenue generated for the government.
“The respondents have conducted and advanced the privatisation process for the Kenya Pipeline Company Limited without genuine, informed and structured public participation, and without adequate disclosure of critical information to the public,” argued Cofek’s lawyer Tali Israel Tali.
Tali argued that the sale will undoubtedly have a ripple effect on the cost of petroleum products in the country. He said consumers and factories will be at the mercy of the person or persons who acquire the corporation, as they will control how much should be charged for storage, among other things.
“KPC’s infrastructure directly underpins petroleum supply and pricing in Kenya. Privatising a controlling stake without price stability safeguards or a demonstrated plan to protect supply reliability threatens to impair consumers’ rights to goods and services of reasonable quality and to information necessary for their benefit,” argued Tali.
It is not the first time that the sale of KPC is subject to a court battle. In 2023 Orange Democratic Movement (ODM) leader Raila Odinga moved to court seeking to stop its sale.
On October 9, 2023, President William Ruto assented the Privatization Bill, 2023 into law. The commencement date was set as October 27. 2023.
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Kenya Pipeline Company (KPC) petroleum storage facilities in Nairobi on August 21, 2024.
[Kanyiri Wahito Standard]
The High Court in Nairobi has lifted the orders it issued last month stopping the sale of the Kenya Pipeline Company (KPC). Justice Bahati Mwamuye yesterday said he was convinced that Parliament should be allowed to consider the privatisation proposal first.
The judge said the
Consumer Federation of Kenya (Cofek) and Petroleum Workers Union could move to court for a fresh freeze if their grievances would not be factored in by the legislators.
“The conservatory orders issued ex parte are hereby vacated,” he ruled.
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Cofek had sued the Attorney General and the Treasury Cabinet Secretary. It also cited KPC, the Capital Markets Authority, and the Nairobi Securities Exchange as interested parties.
The lobby group alleged that KPC is a strategic national asset, owning and operating the national petroleum pipeline and storage infrastructure, and hence cannot be handed to private entities without proper procedures and public participation.
The Stephen Mutoro-led federation alleged that KPC shares are being discreetly sold, despite the corporation being one of the most profitable entities for the government.
The judge heard that a transfer of a 65 per cent stake to private individuals would mean that Kenyans are losing out on the much-needed revenue generated for the government.
“The respondents
have conducted and advanced the privatisation process for the Kenya Pipeline Company Limited without genuine, informed and structured public participation, and without adequate disclosure of critical information to the public,” argued Cofek’s lawyer Tali Israel Tali.
Tali argued that the sale will undoubtedly have a ripple effect on the cost of petroleum products in the country. He said consumers and factories will be at the mercy of the person or persons who acquire the corporation, as they will control how much should be charged for storage, among other things.
“KPC’s infrastructure
directly underpins petroleum supply and pricing in Kenya. Privatising a controlling stake without price stability safeguards or a demonstrated plan to protect supply reliability threatens to impair consumers’ rights to goods and services of reasonable quality and to information necessary for their benefit,” argued Tali.
It is not the first time that the sale of KPC is subject to a court battle. In 2023 Orange Democratic Movement (ODM) leader Raila Odinga moved to court seeking to stop its sale.
On October 9, 2023, President William Ruto assented the Privatization Bill, 2023 into law. The commencement date was set as October 27. 2023.
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By Kamau Muthoni