A Kenya Pipeline Company depot in Eldoret.
The High Court has certified as urgent a petition challenging the reappointment of the Kenya Pipeline Company (KPC) board of directors.
The court directed the Kenya Petroleum Oil Workers Union to immediately serve the petition and all supporting documents on the respondents, including board chairperson Faith Bett Boinett and Treasury Cabinet Secretary John Mbadi.
"The application and all pleadings be served immediately, and a return of service be filed," the court ordered, directing that the case be mentioned on July 29 for further directions.
Other respondents named are board members Christopher Karani, Mutunga Wambua, Irene Wachira, Joyce Emanikor and Flora Okoth, as well as Fastnett Energy Ltd.
Cabinet Secretary for the National Treasury and Economic Planning John Mbadi.
'Not competitively recruited'
In the petition, the union argues that the board has continued discharging its mandate despite not being competitively recruited as required by law. It further alleges that Ms Boinett has a conflict of interest, as a company allegedly linked to her, Fastnett Energy Ltd, has transport and storage agreements with KPC. The union also claims that several board members lack the academic and professional qualifications required to oversee the company and make strategic decisions.
President William Ruto reappointed the board on December 19, 2025, for a three-year term. According to the union, the appointments did not follow the competitive recruitment process required under Section 13 of the Government-Owned Enterprises Act. The union also maintains that Ms Boinett does not meet the qualifications for the position, in addition to the alleged conflict of interest.
The petition states that KPC has since transitioned into a public limited company, with the governments of Kenya and Uganda as majority shareholders.
On April 22, 2026, Mr Mbadi revoked KPC's status as a government entity through Legal Notice No. 72. As a result, the existing board became a caretaker board with a limited mandate that excluded making strategic decisions, pending the constitution of a substantive board under the company's Articles of Association.
"Notwithstanding the foregoing, the 11th respondent (KPC) continues operating without a substantive board of directors duly constituted under the Articles of Association of the 11th respondent, including but not limited to the onboarding of the 1st interested party's (Attorney General of Uganda) GoU director," the petition states.
The union claimed the caretaker board has continued making major decisions, including the removal of the managing director and the recruitment of a human resources consultant to spearhead the company's restructuring. It also says the board notified the union on July 8 of plans to downgrade employees' medical cover, despite ongoing consultations between the company and the union.
According to the petition, the proposed changes would replace the existing internal medical scheme with a medical provider "in unclear and non-transparent circumstances designed to benefit an individual instead of serving the best interest of the staff."
The union says it wrote to the Capital Markets Authority and the Ministry of Energy seeking investigations into the alleged irregularities, but no action was taken.
"The actions and inactions by the respondents as indicated hereinabove amount to a violation and infringement of the right to fair administrative action and further a contravention of the Constitution, warranting intervention by the High Court," the union said.
The government completed the sale of a 65 percent stake in KPC in March, raising Sh106.3 billion through an oversubscribed initial public offering. KPC was listed on the Nairobi Securities Exchange on March 10, 2026, with the government retaining a 35 percent shareholding.
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