Mbadi warns politicians against remarks that could scare away investors

Treasury Cabinet Secretary John Mbadi has warned that political leaders risk undermining investor confidence and destabilising Kenya’s financial markets through statements that cast doubt on investments, as he defended the sale of a 24.76% stake in the Kenya Pipeline Company (KPC) to Nigerian billionaire Aliko Dangote.

Mbadi said public officials should exercise caution when commenting on capital markets, arguing that negative political rhetoric could discourage both local and foreign investors from committing money to the country.

In remarks shared on Sunday, the Cabinet Secretary said investor confidence was essential to economic growth, business stability and job creation.

“Investor confidence is the backbone of a strong economy. When political leaders undermine confidence in our markets, they risk scaring away both local and foreign investors, weakening market stability, and undermining the very businesses and jobs our people depend on,” Mbadi said.

He cautioned against turning commercial transactions into political disputes, saying such statements could create uncertainty among investors considering opportunities in Kenya.

“Capital markets are not a political playground; they are a pillar of national economic growth. Every careless political statement can create uncertainty, erode trust, and make investors think twice before committing their money to Kenya,” he added.

The Treasury chief’s remarks come amid debate over Dangote’s acquisition of a 24.76% stake in KPC, reportedly valued at Sh42.5 billion.

The Nigerian businessman confirmed the purchase on October 21, 2026, making his company one of the pipeline operator’s largest shareholders. The shares were acquired from public entities that had invested in the company during its initial public offering earlier in the year.

Mbadi questioned why political leaders would criticise the entry of another investor into a publicly traded company when shares are available for purchase through the stock exchange.

His remarks followed criticism by Kiharu MP Ndindi Nyoro, who has questioned the circumstances surrounding the sale of the KPC shares to interests linked to Nigerian billionaire Aliko Dangote.

Nyoro has alleged that President William Ruto influenced state-backed institutions to purchase shares during KPC’s initial public offering before directing them to sell their holdings to the private investor.

Further, the Treasury CS argued that Dangote’s investment showed confidence in Kenya’s economy despite the political debate surrounding the transaction.

“What Dangote is demonstrating to the whole world is confidence of an investor in one of the largest economies of Africa,” Mbadi said.

The CS also pointed to the continued willingness of investors to commit capital despite the country’s approaching election period, arguing that political competition should not undermine confidence in legitimate business transactions.

He said Kenya’s capital markets had performed well internationally and warned leaders against making statements that could deter foreign investment.

The Nairobi Securities Exchange (NSE) provides a platform where investors buy and sell shares in listed companies, allowing businesses and other shareholders to trade ownership stakes.

Companies can also raise funds through initial public offerings, while existing shareholders can sell shares to other investors through the secondary market. The Capital Markets Authority regulates the sector and oversees public offers, listings and other securities-market activities.

KPC listed on the NSE in March 2026 after an initial public offering that attracted applications for 12.49 billion shares against 1.8 billion offered, an oversubscription of 105.7 per cent, according to the Privatisation Authority.

The subsequent sale of shares by public entities to Dangote has, however, prompted scrutiny of the commercial rationale for state-backed institutions buying shares during the IPO and later disposing of their holdings.

The transaction has also drawn attention because Dangote is pursuing wider investments in Kenya’s energy sector, including a planned petroleum refinery in Lamu. His acquisition of the KPC stake expands his interests in petroleum transportation and distribution in East Africa.

Mbadi maintained that leaders should let commercial transactions proceed without politically driven commentary that could damage the country’s reputation as an investment destination.

He concluded that the government’s priority should be to encourage investment, strengthen the economy, and protect the businesses and employment opportunities that depend on investor confidence.