KPC Union Petitions CMA Over CEO Recruitment Process as Governance Questions Emerge After Structural Changes

By Benadeta Mwaura - Reporter

Kenya, 21 May 2026 - A governance dispute has emerged at Kenya Pipeline Company (KPC) after the Kenya Petroleum Oil Workers Union petitioned the Capital Markets Authority (CMA), calling for the suspension of the ongoing recruitment process for the company’s Managing Director and Chief Executive Officer.

The union is questioning the legality and legitimacy of the board currently overseeing the exercise, citing concerns linked to recent structural changes following the partial sale of government stake and the company’s transition into a publicly listed entity.

According to the union, the recruitment process should not proceed before the board is properly reconstituted to reflect the new ownership structure and comply with corporate governance requirements under the Companies Act and CMA guidelines.

The workers argue that the current board may not have the full legal mandate to make strategic leadership decisions, including the appointment of a CEO, given the governance transition that has followed the restructuring of KPC’s shareholding.

The petition further raises concerns about transparency and accountability in the recruitment process, warning that proceeding under what it describes as a “transitional or disputed board” could expose the company to legal uncertainty and future shareholder disputes.

The union has therefore urged the regulator to intervene, halt the process if necessary, and ensure full compliance with corporate governance standards before any senior appointment is concluded.

At the centre of the dispute is KPC’s recent shift in ownership structure following the government’s divestiture of a significant stake, which has introduced new shareholders and altered board dynamics.

This transition has triggered wider debate within the company over board composition, decision-making authority, and representation of new stakeholders in key governance processes, including executive recruitment.

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The recruitment of a new CEO has also become more contentious following the exit of previous leadership and recent board changes, with some stakeholders arguing that the appointment should only proceed once all governance structures are fully aligned with the post-privatisation framework.

The union maintains that failure to do so risks undermining trust in the process and weakening corporate accountability at a critical moment in the company’s transition.

The CMA is now expected to review the petition and determine whether the recruitment process should proceed or be temporarily halted pending clarification on board legitimacy and governance compliance.

The outcome is likely to set an important precedent for how leadership transitions are handled in partially privatised state-linked enterprises undergoing structural reform.