Omtatah Flags Ksh 192M Kenya Pipeline Project To Nigerian Firm
Busia Senator Okiya Omtatah has expressed concerns about the transfer of a Kenya Pipeline project worth Ksh192 million to a private entity, citing three key constitutional infractions.
Omtatah highlighted a post in which he asked for a statement on the project’s transfer in a statement published on Friday, June 13.
The Senator rejected the Energy Ministry’s response on the topic.
“I have rejected the Ministry of Energy’s response regarding the controversial handover of the Kenya Pipeline Company LPG project to a private firm,” Omtatah stated.
“The reply was shallow and reflected a contemptuous disregard for the Constitution and the laws that protect public assets.”
“The Ministry ignored the Public Finance Management Act, the Public Procurement and Asset Disposal Act, and the Companies Act, under which the Kenya Pipeline Company is registered,” he added.
“These laws are not optional. They are the foundation of accountability in a democracy.”
If we give in to impunity today, we lose the Republic tomorrow.
— Okiya Omtatah Okoiti (@OkiyaOmtatah) June 13, 2025
I have rejected the Ministry of Energy’s response regarding the controversial handover of the Kenya Pipeline Company LPG project to Asharami Synergy. The reply was shallow and reflected a contemptuous disregard for… https://t.co/gE6R6Rcl5r pic.twitter.com/zf1xAusfOh
According to Omtatah, KPC invested Ksh 192 million in preparatory work such as demand surveys, environmental and social impact evaluations, and engineering designs.
However, he claimed that the project was jeopardised when it was transferred without sufficient process.
According to Omtatah, a violation of the Public Finance Management Act (PFMA), which promotes the cautious administration of public finances, happened when the project was turned over without a clear, legally acceptable process.
This may contradict Sections 68 and 73 of the PFMA, which mandate accountability and value for money in public spending.
The selection of a Nigerian firm as the project’s new custodian may have breached the Public Procurement and Asset Disposal Act.
Omtatah questioned if the process of selecting a private contractor to build the gas handling facility followed due process, such as competitive bidding and transparency.
The PPADA (Sections 45-50) demands competitive procurement processes, transparency, and justice when selecting contractors for public projects.
If the firm was chosen without following these procedures, it could be a violation of the Act.
Omtatah especially cited a lack of details on received offers and arguments for contracting the firm, which meets the requirements of the Public Procurement and Asset Disposal Act (PPADA).
Omtatah claims that KPC violated the Companies Act by failing to follow corporate governance standards and legal requirements in its dealings.
The Companies Act (Sections 143-145) mandates corporate directors to operate in the best interests of the firm and its shareholders, i.e. the Kenyan public.
ALSO READ:
- Fourth Band Of Kenyan Police Land At JKIA As MSS Mission Officially Ends
- Ruto’s Lies Provokes Tanzania To Fact-Check His Bogus Roads Figures
- KMTC Announces Fresh Guidelines On Student Deferment, Course Change & Transfers
- EMBU: Autopsy Reveals How Hospital Protestors Died, Bullets Recovered
- Top Diplomats Exchange Blows Inside Nairobi Embassy, Investigations Underway
If the decision to hand over the project was not in KPC’s best interests or was taken without sufficient board permission or shareholder authorization, it may constitute a breach of fiduciary duty.
However, in reaction, the government justified the move, stating that a public-private partnership (PPP) was the best option to continue forward with the project.
They cited fiscal restrictions, claiming that due process was followed throughout the project’s handover.
In terms of recouping the Ksh192 million, the government stated that future discussions with the corporation will be critical in determining a mutually beneficial solution.
Omtatah Flags Ksh 192M Kenya Pipeline Project To Nigerian Firm
