Kenya Pipeline Company workers fear job cuts amid privatization plan

Workers at the Kenya Pipeline Company (KPC) are demanding job security assurances as the government moves to sell a majority stake in the State corporation.

Kenya Petroleum Workers Union Secretary-General George Okoth says the 742 unionised employees fear redundancies, accusing management of ignoring their concerns despite holding sensitisation meetings.

Appearing before the joint committees on Energy and Public Debt and Privatization, Okoth questioned the pace of the process, saying: “It appears that this matter is being rushed and workers are getting worried as to why the rush all of a sudden.”

Employees argue that the government could boost efficiency without privatizing the company, claiming that KPC’s failure to generate higher profits is due to poor governance and widespread corruption.

“We believe that KPC, if put in proper and safe hands, can deliver more. We can realize this money that is being sought here within a short time,” Okoth stated.

Energy and Treasury Cabinet Secretaries have assured workers that there will be no job losses, and any affected staff will be compensated under their collective bargaining agreement. However, the union is demanding a legally binding commitment.

“We want to be guaranteed that for the remainder of our life at KPC, we are not going to see this thing called redundancy,” said Okoth.

The government has defended the plan, citing a cash crunch and the need to raise Ksh.149 billion for the 2025/26 budget to fund development projects and clear pending bills without borrowing.

“If we can finish this by September or October, that will enable us to proceed because there are many things within the budget,” said National Treasury Principal Secretary Dr. Chris Kiptoo.

As the public hearing concluded, Members of Parliament expressed concern over the process.