The Kenya Pipeline Company (KPC), a key parastatal responsible for transporting and storing petroleum products across Kenya, has been at the center of multiple corruption scandals and investigations over the years. These controversies—spanning inflated contracts, dubious procurement, legal battles, and alleged theft of public funds—have not only raised questions about governance at the firm but also about wider systemic weaknesses in Kenya’s public sector.
Top 8 major scandals at Kenya Pipeline Company (KPC)
1. Kisumu Oil Jetty Procurement Scandal (Over Ksh 1.9 Billion)
One of the most prominent scandals involved the construction of an oil jetty at Kisumu, valued at over Ksh 1.9 billion. Top KPC officials, including the then Managing Director Joe Sang, were charged with abuse of office, misappropriation, and failure to comply with public finance rules tied to the project’s contracting process.
This case illustrated how procurement oversight failures can lead to huge losses of taxpayer money and sparked major media and legal scrutiny.
2. Hydrant Pit Valves Procurement & EACC Raids
Another high-profile controversy centered on the procurement of hydrant pit valves—equipment used to refuel aircraft—at Jomo Kenyatta International Airport.
Allegations were that KPC procured the valves at grossly inflated costs (over Ksh 600 million) through a break-in company instead of directly from the manufacturer.
The Ethics and Anti-Corruption Commission (EACC) raided homes of senior staff linked to the scandal as part of its probe, highlighting serious corruption concerns within the organization.
3. Procurement Fraud Convictions (2025 Court Ruling)
In January 2025, three individuals—including a KPC procurement officer—were found guilty in court for procurement fraud related to the same hydrant valves tender scandal.
The ruling sent a message about accountability, with fines and prison terms on the table for those convicted of abusing office and submitting false procurement documents.
4. Auto-Transformer Tender Corruption Charges
Further illustrating persistent procurement governance issues, former KPC Managing Director Charles Tanui and two other senior officials were charged in 2020 over corruption and irregularities in awarding a Sh30 million auto-transformer tender.
The accusations included failure to abide by procurement laws and authorizing payments without valid contracts.
5. Auditor General’s Report on Irregularities
Auditor General reports flagged multiple irregularities in KPC’s procurement and project execution processes. Problems included incomplete asset registers, lack of justification for direct procurement of key parts, breach of the Public Procurement and Disposal Act, and unexplained delays and cost overruns in major projects.
Such findings have repeatedly put KPC under scrutiny for weak internal controls.
6. Alleged Land Deal Irregularity – Ngong Forest Scandal
Although connected to multiple parties, one scandal involving a land purchase near Ngong Forest saw high-profile figures—including a government minister—charged over fraudulent sale transactions that involved KPC’s purchase of land at an inflated price.
While some were acquitted due to lack of evidence, it added to the cloud of controversy surrounding the parastatal’s dealings.
7. Pipeline Project Delays & Legal Battles
The construction of the Mombasa-Nairobi pipeline (Line 5) also got mired in disputes with contractors over extensions of time and payment claims, leading to court battles and costly penalties for KPC.
In 2024, a Treasury directive connected to this dispute ended up costing the company over Sh3 billion in interest and penalties.
8. Mlolongo Pipeline Oil Theft & Security Controversies
Beyond procurement, KPC faced scrutiny over fuel theft along its pipeline—most notably at Mlolongo in Machakos County—involving underground theft and allegations of insider collusion.
This sparked legal confrontations with contracted security firms and raised questions about pipeline security infrastructure.
The Impact on Public Trust & Governance
These scandals cumulatively show deep weaknesses in KPC’s procurement systems, project management, and internal oversight. They have led to public distrust, numerous legal actions, criminal charges against officials, and ongoing calls for reform in how state corporations handle major contracts and public funds.
For Kenya’s broader fight against corruption and wasteful expenditure, cases involving KPC remain cautionary tales of what can go wrong when governance safeguards are weak.
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