The legislator claims that senior figures intend to use foreign proxies, particularly from Uganda, to secretly acquire large stakes in the strategic state-owned firm.
Speaking on January 28 during the Vijana Uongozini forum held in Embu County, Nyoro alleged that the privatisation process surrounding KPC has been deliberately structured to allow local elites to disguise themselves as foreign or regional investors.
According to the MP, this would enable them to bypass safeguards meant to protect Kenyan ownership of national assets.
“Kenyans deserve to clearly understand what is happening to their public assets,” Nyoro said.
“I am ready to stand at the frontline and explain how certain individuals want to use deception to take control of KPC shares.”
The controversy comes amid the government’s plan to sell 11.81 billion KPC shares through an Initial Public Offering (IPO), representing 65 per cent of the company’s ownership.
The IPO, which opened on January 19 and is set to close on February 19, 2026, prices each share at Ksh9 and aims to raise approximately Ksh106.3 billion.
According to the National Treasury, proceeds from the sale will be used to finance infrastructure projects and reduce Kenya’s growing public debt burden.
However, Nyoro insists that the structure of the IPO creates room for abuse.
Under the current allocation framework, 60 per cent of the shares are reserved for Kenyan investors, 20 per cent for foreign investors, and another 20 per cent for regional investors.
Nyoro argues that it is within the “regional investors” category that manipulation is likely to occur.
He claims that individuals within the Kenyan political and business elite plan to channel their investments through Uganda, presenting themselves as regional investors in order to gain preferential access to shares.
“When you hear about regional investors, particularly from Uganda, Kenyans should ask serious questions,” Nyoro stated.
“We know very well that some of the people positioning themselves as Ugandan investors are actually Kenyans operating through proxies.”
Nyoro warned that if the alleged scheme succeeds, ordinary Kenyans could lose billions of shillings as control of the profitable pipeline company shifts into the hands of a few well-connected individuals.
He also expressed concern that retail investors may be left exposed if the share price drops after the listing.
The legislator criticised the decision to list KPC on the Nairobi Securities Exchange (NSE), arguing that the valuation may not reflect the company’s true worth.
He cautioned that once trading begins, early insiders could offload shares, causing prices to crash and leaving small investors with significant losses.
“This is not just about politics,” Nyoro said.
“It is about transparency, good faith, and protecting the interests of Kenyan citizens.”
The allegations have further intensified an already heated national debate over President William Ruto’s privatisation agenda.
The administration has defended the sale of state-owned enterprises as a necessary step to unlock capital, improve efficiency, and fund development.
President Ruto has dismissed Nyoro’s claims, describing them as “political conmanship and intellectual deceit” aimed at misleading the public.
He maintains that the privatisation programme is part of a broader strategy to transform Kenya into a middle-income economy.
According to the President, the government plans to raise up to Ksh5 trillion through privatisation and asset sales, with funds directed to the National Infrastructure Fund (NIF) and the proposed Sovereign Wealth Fund (SWF).
The KPC transaction is a key pillar of what Ruto has described as Kenya’s “journey to Singapore,” a vision of rapid economic growth driven by large-scale infrastructure investment.
Despite these assurances, opposition leaders and civil society groups remain unconvinced. Several legal challenges have been filed in court questioning the legality, transparency, and public participation surrounding the KPC privatisation process.
Among those challenging the sale are Wiper Party leader Kalonzo Musyoka and People’s Liberation Party leader Martha Karua.
They argue that the government failed to adequately involve the public and Parliament, and that the valuation of KPC does not sufficiently protect national interests.
Critics have also raised concerns about national security, given KPC’s role in transporting and storing fuel across Kenya and the wider region.
Some argue that allowing foreign or proxy ownership of such a strategic asset could expose the country to economic and security risks.
As the IPO continues, financial analysts say investor confidence will depend largely on how transparently the process is managed and whether the government addresses allegations of insider dealing and proxy investments.
For now, Nyoro has vowed to continue speaking out, insisting that Kenyans must remain vigilant.
“This is a national asset built with public money,” he said.
“Kenyans must not be shortchanged through secret deals and shadowy arrangements.”
With the IPO window still open and court cases pending, the fate of the KPC share sale remains uncertain.
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