The Ugandan government has appointed two senior officials to the Kenya Pipeline Company (KPC) board, reviving the previously stalled process of recruiting a new chief executive officer.
This move follows a revised company charter granting Uganda significant influence, including veto rights over the appointment and dismissal of the KPC CEO.
Board Appointments and Powers
- Uganda named Ramathan Ggoobi, Permanent Secretary for Finance, and Irene Pauline Bateebe, Permanent Secretary for Energy, as its representatives on the KPC board.
- Other new non-executive directors include Samson Kipkemboi Burgei, Meshack Otieno Kidenda, and Ronald Kenyanya Nyamosi.
- The revised Articles of Association, agreed upon after Uganda’s acquisition of a 20.15% stake in KPC, grant Kampala veto powers over CEO hiring, fuel tariffs, dividend policies, and employee restructuring.
Background to the CEO Recruitment Delay
The search for a new managing director began after Joe Sang resigned amid a fuel scandal involving senior officials. However, disagreements arose within the board over the legality of continuing the CEO hiring without Uganda’s board members in place, leading to a freeze on the recruitment process.
With Uganda now formally represented, KPC has confirmed the CEO search will resume promptly, with acting managing director Pius Mwendwa currently overseeing operations.
Strategic Regional Cooperation
Uganda’s stake in KPC, acquired for over Sh30 billion through the Uganda National Oil Company (UNOC), reflects a strategic effort to deepen regional energy cooperation and secure national interests.
This development follows recent agreements allowing Uganda to import petroleum products via Kenya’s Port of Mombasa, further strengthening bilateral ties.
The IPO that brought Uganda into KPC’s ownership was oversubscribed, with many top shareholders holding shares through nominee accounts to maintain anonymity.
