Kenya Petroleum Union Raises Alarm Over Alleged Irregular MD Hiring

The Kenya Petroleum Oil Workers Union(KPOWU )has petitioned the Capital Markets Authority (CMA), raising concerns over alleged corporate governance irregularities in the recruitment of a Managing Director at Kenya Petroleum Company PLC.

In a statement dated May 15, 2026, the union accused the company’s current Board of Directors of proceeding with the recruitment process despite what it describes as unresolved governance and structural issues following a change in the company’s ownership.

“We write to formally petition the Capital Markets Authority regarding serious corporate governance concerns arising from the actions of the current Board of Directors of Kenya Petroleum Company PLC,” read part of the statement.

The KPOWU noted that the company recently transitioned from a public to a private entity following changes in its shareholding structure, and the transition required a full reconstitution of the Board to reflect current ownership.

KPOWU Flags Irregularities in MD Recruitment Process

However, the petition highlighted that the Board proceeded to advertise the Managing Director position before completing the reconstitution process.

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According to the union, the current Board may lack the legal mandate to undertake major strategic decisions, including executive appointments.

Kenya Petroleum Workers Union also argued that continuing with the recruitment process under the current arrangement could undermine key governance principles.

In addition, the union cautioned that the process could expose the company to legal uncertainty, operational instability, and possible disputes involving shareholders, employees, and other stakeholders.

The petition also raised concerns over potential conflicts of interest among directors involved in the recruitment process.

Union Calls for Capital Marketing Authority (CMA)  Intervention

In its petition, the union has urged the CMA to take several actions, including:

• Investigating the legality and propriety of the ongoing Managing Director recruitment process
• Determining whether the current Board is properly constituted and legally mandated
• Issuing regulatory guidance to ensure compliance with governance requirements

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• Considering suspension or deferment of the recruitment process pending Board reconstitution
• Taking any other regulatory measures necessary to protect governance integrity and shareholder interests
• Ensuring full disclosure of conflicts of interest and recusal where necessary

Additionally, the Kenya Petroleum Workers Union urged the Capital Markets Authority to urgently consider the matter and take appropriate regulatory action.

Kenya pipeline worker at the oil refinery tank . Photo/ kenya pipeline