Struggle for control of Kenya Pipeline root cause of job losses

The lucrative nature of oil business and a thriving siphoning syndicate could be at the centre of many job losses at management level at Kenya Pipeline Company (KPC) in the recent past.

The struggle to control the multi-billion-shilling State agency, which handles the core energy stocks for the country, has made KPC to have a record four chief executives in three years.

Mr Joe Sang, who has been on the hot seat for barely a year, has had a tough time defending tender awards and dealing with controversies involving business rivalries and political power plays.

The latest case of mysterious fuel losses at KPC systems disguised as “pipeline losses” has pitted him against oil marketers displeased with the volumes being lost, and which they believe is stolen and sold in the same market they intend to sell their products.

Insiders say his action to suspend one stock analyst last week has caused a stir in the inner circles of the staff at the core of the siphoning syndicate who are willing to go any length to protect their interests.

Those familiar with the goings-on also point to political intrigues involving push-and-pull between two factions of the ruling Jubilee Party, with each keen on controlling the giant organisation.

None of the managing directors at the firm have had a smooth exit.

NOTHING TO WORRY ABOUT

Mr Sang’s predecessor, Flora Okoth, acted for less than one year before she went on compulsory leave and her position advertised under unclear circumstances. 

Before then, KPC had suspended another MD, Charles Tanui, who was later charged with abuse of office including irregularly awarding a Sh29 million contract for the installation of auto-transformers.

Preceding Mr Tanui was Mr Selest Kilinda who was fired by the board in 2013 on grounds of nepotism and abuse of office.

To calm the latest jitters, Mr Sang released a memo on Wednesday assuring the staff that all was well save for the investigation on the suspended staff.

“Management’s attention has been drawn to reports appearing in sections of the print media to the effect that there is panic amongst staff owing to the investigations following the ‘theft of fuel.

"In this regard, management wishes to inform staff that so far, only one member of staff (name withheld), a Stock Control Analyst, was suspended from duty for in-depth investigations to be carried out. "(He) is suspected to have accessed the advances table in the system and advanced M/s Dalbit Petroleum 300,000 litres of product without authorisation,” read the memo.

A number of job losses at KPC have left it with many bitter ex-workers with sensitive information on illegal deals, further deepening woes within.