WHEN THE STATE EXITS: GOVERNANCE RISKS IN THE FIRST YEAR OF PRIVATIZATION
By Tim Munyi Mugo | Advocate of the High Court of Kenya On 10 March 2026 President William Ruto rang the bell at the Nairobi Securities Exchange and Kenya Pipeline Company entered the capital markets as a listed entity. The moment was described as a historic milestone. Six weeks later the company removed its Managing Director and Chief Executive Officer, Joe Sang, following a fuel scandal. Within days of that removal the board advertised the vacancy. Within days of the advertisement the Kenya Petroleum Oil Workers Union filed a formal petition to the Capital Markets Authority dated 15 May 2026, accusing the current board of proceeding with the recruitment before the company's governance structure had been properly reconstituted following its transition from a State corporation to a publicly listed company. The board has not yet filled the position. The union petition is live. Foreign portfolio investors are, according to market analysts, delaying further equity acquisitions unti...