Whistleblower wants probe on Kenya Pipeline IPO, alleges fraudulent transactions

The letter by advocate Kennedy Oduor Wanyanga, on behalf of his client, Kelvin Omondi, has been copied to the Ethics and Anti-Corruption Commission (EACC), Directorate of Criminal Investigations (DCI), Commission on Administrative Justice, Law Society of Kenya, Assets Recovery Agency, Parliamentary Accounts Committee and other offices.

The advocate has asked the agencies to investigate allegations contained in documents, correspondence, bank statements and communications said to have been placed in his client's possession.

The letter further calls for prosecution of any persons found culpable and recovery of public funds or assets allegedly acquired through proceeds of the suspected wrongdoing.

The complaint also questions the circumstances surrounding the appointment of Dr Janerose Omondi as Acting Chief Executive Officer of the Privatization Authority in June 2025.

According to the letter, the appointment and its subsequent extension raise questions under Chapter Six of the Constitution and applicable public sector governance requirements.

These claims remain allegations and would require investigation and verification by the relevant authorities.

The letter further alleges irregularities in the procurement of transaction advisory and share-registry services, including changes to the terms of reference after their initial publication.

It claims that the amendments may have disadvantaged some bidders and were allegedly structured to favour a predetermined bidder.

Questions have also been raised concerning the composition and conduct of tender evaluation committees, alleged solicitation of money from transaction advisers, and the alleged inflation of transaction-advisory costs. The advocate asks investigators to examine the financial records and communications relating to the procurement.

Another major issue raised concerns an alleged increase in the budget for KPC IPO transaction-advisory services from Ksh.200 million to Ksh.350 million without the required approval.

The complaint argues that the increase should be examined against the applicable provisions of the Public Finance Management Act, procurement law and the approvals governing the IPO.

The letter also challenges aspects of the contract awarded to Faida Investment Bank and alleges discrepancies between the tax treatment contained in the tender documents and that ultimately appearing in the contract.

According to the complaint, the advisory arrangement included a one per cent success fee and a 1.5 per cent placement fee.

The advocate estimates that, based on the stated IPO proceeds, the fees and related taxes could amount to approximately Ksh.2.918 billion.

The complainant further alleges that approximately Ksh.12.848 billion in bids attributed to the lead transaction adviser had not been honoured by the relevant payment deadline.

The letter asks investigators to establish whether shares linked to allegedly unpaid bids were nevertheless accepted, allotted or credited to investors' Central Depository and Settlement Corporation (CDSC) accounts.

The complaint estimates that the disputed amount could have implications for placement and success fees and alleges a potential loss of more than Ksh.321 million. It calls for examination of the underlying bid records, payment records, IBGs, CDSC accounts and bank statements to establish whether the allegations are substantiated.

The letter also raises questions over the subscription rate publicly communicated during the KPC IPO. It argues that there may be a distinction between bids initially recorded and bids ultimately funded and settled.

The complainant therefore wants authorities to determine whether the publicly reported subscription figures accurately reflected genuine and ultimately funded demand.

The advocate has attached several documents to support the complaint, including correspondence involving Image Registrars and the Privatization Authority, the consultancy agreement between Faida Investment Bank and Rock Advisors, a business valuation report, bank statements, the lead transaction-adviser contract, WhatsApp messages and email communications.

The letter asks the relevant agencies to jointly or independently investigate the allegations, establish whether public funds were unlawfully paid or lost, identify any persons who may have benefited, and pursue recovery of any funds or assets found to have been obtained unlawfully.