Omtatah Drags Government to Court Over ‘Secret IMF-Driven’ KPC Privatisation Plan
The Kenyan government’s plan to partially privatise the Kenya Pipeline Company (KPC) has been thrown into legal uncertainty after a fresh constitutional petition was filed at the High Court challenging the move as unlawful and externally driven.
Busia Senator Okiya Omtatah, together with petitioners Bernard Muchiri Muchere and Naomi Nyakerario Misati, moved to court on January 2, 2026, seeking to block the proposed sale of a majority stake in the state-owned oil transporter.
At the centre of the dispute is the government’s intention to offload up to 65 per cent of KPC through an Initial Public Offering (IPO) scheduled for March 2026 as part of a broader privatisation programme targeting key state-owned enterprises.
The petitioners argue that the decision to sell KPC did not originate from the will of the Kenyan people but was instead influenced by external pressure from international lenders, particularly the International Monetary Fund (IMF).
“This plan is unconstitutional, unlawful and anti-sovereign,” the petition states. “It is not a decision of the people of Kenya but one driven by external pressure from the International Monetary Fund.”
KPC is currently a fully government-owned and profitable entity, raising questions about the rationale behind its proposed sale. According to court filings, the company recorded a profit of KSh 6.87 billion in 2024 and remitted approximately KSh 7 billion in dividends to the National Treasury during the same period.
The petitioners contend that disposing of a consistently revenue-generating strategic asset to service public debt violates Kenya’s public finance principles and undermines national economic sovereignty.
They further allege that the government has failed to account for significant sums held by the company, including KSh 97 billion in retained earnings and depreciation funds, which they argue should be subjected to public scrutiny before any privatisation process is allowed to proceed.
Beyond the financial concerns, the petition raises procedural and constitutional issues, including what the applicants describe as a complete lack of meaningful public participation in the decision-making process.
The filing also challenges the legality of appointments made to the Privatisation Commission, claiming they were irregular and failed to meet constitutional standards. In addition, the petition questions Parliament’s approval of the privatisation framework through a Sessional Paper rather than through substantive legislation, which the petitioners argue falls short of constitutional requirements.
“We are asking the Court to declare the entire privatisation process unconstitutional, quash all related decisions and notices, and permanently bar any further steps toward the sale of KPC,” the petition reads.
The case forms part of a wider challenge to the government’s push to privatise several strategic state-owned enterprises as it seeks to raise revenue and reduce public debt amid mounting fiscal pressure.
The petitioners have emphasised that they are not seeking any form of personal compensation, describing the case as public interest litigation aimed at safeguarding assets that belong to all Kenyans.
“This petition is brought in the public interest to protect strategic national assets from unlawful disposal,” the court documents state, adding that KPC plays a critical role in national energy security.
The High Court is yet to issue directions on the matter, but the case is expected to intensify debate over Kenya’s privatisation agenda, the role of international lenders in domestic policy decisions, and the constitutional limits of executive authority in managing public assets.
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Omtatah Drags Government to Court Over ‘Secret IMF-Driven’ KPC Privatisation Plan