NAIROBI, Kenya, May 21-The Kenya Petroleum Oil Workers Union has petitioned the Capital Markets Authority over what it terms as corporate governance irregularities at Kenya Pipeline Company, raising concerns about the ongoing recruitment of the firm’s Managing Director.
In a letter dated May 15, the union questioned the legality of the recruitment exercise, arguing that the current board may not have the proper mandate to oversee the appointment following changes in the company’s ownership structure.
The union says KPC recently transitioned from a public company to a private company, a move it argues requires the board to be reconstituted to reflect the new shareholder structure before any major executive appointments are made.
According to the petition signed by National General Secretary George Okoth, proceeding with the recruitment before regularizing the board could expose the company to governance and legal risks.
“The current Board may no longer validly represent the prevailing shareholder structure and therefore may lack the requisite authority to undertake strategic executive appointments on behalf of the Company.”
“Proceeding with the recruitment of a Managing Director prior to proper board reconstitution undermines transparency, accountability, legitimacy, and fiduciary responsibility expected under accepted corporate governance standards.”
The union warned that appointing a substantive Managing Director under what it describes as a disputed or transitional board could create operational instability and uncertainty for shareholders, employees, and other stakeholders.
It also raised concerns over possible conflicts of interest among directors, arguing that some board members could have affiliations with previous shareholders, political interests, or prospective candidates for the top job.
The workers’ union is now asking the CMA to investigate the legality of the recruitment process, determine whether the current board is properly constituted, and issue regulatory guidance to safeguard compliance with corporate governance standards.
Among the proposals made to the regulator is the suspension or deferment of the recruitment exercise pending the proper reconstitution of the board.
The petition has also been copied to the Registrar of Companies.
The developments come at a time when scrutiny over governance standards in State-linked corporations continues to intensify, with regulators increasingly under pressure to enforce transparency, accountability, and investor protection measures.
