Ruto warns brokers, loan sharks over investor extortion

President William Ruto has warned brokers, loan sharks and extortionists against targeting investors with demands for bribes, saying the practice undermines investment in Kenya.

Speaking in Kora, Kitui County, Ruto said investors should be free to buy shares listed on the Nairobi Securities Exchange (NSE) without intimidation or profiling for personal gain.

“I am announcing to all the brokers. I am giving notice to Shylocks and brokers and extortionists, you have undermined investment in the country of Kenya for far too long,” he said.

“We cannot allow you to continue extorting from our investors, to continue profiling all our investors with an intention for you to seek bribes from them.”

The President said investors had a right to participate in the stock market, insisting that share transactions should take place freely without interference from individuals seeking to benefit from them.

“Every investor has a right. Shares in the Nairobi Stock Exchange are sold freely. Whoever wants to buy should buy. Whoever does not want to buy should stay,” Ruto said.

His remarks come amid heightened scrutiny of the government's handling of the Kenya Pipeline Company (KPC) share sale following Nigerian billionaire Aliko Dangote's acquisition of a 24.76 per cent stake in the company in a transaction valued at approximately Sh42.5 billion.

The deal has drawn criticism from Kiharu MP Ndindi Nyoro, who has questioned the government's approach to the transaction and alleged that the acquisition could form part of a wider plan to transfer majority ownership of KPC to private investors.

In a statement issued on October 22, Nyoro claimed the target was to acquire between 51 and 75 per cent of the company.

“The end plan is to take over the majority shares in KPC. Their target is 51% on a bad day and 75% if everyone plays ball,” he said.

Nyoro also alleged that a future rights issue could dilute the government's stake to below 20 per cent if the state did not participate. However, no announced rights issue has confirmed the proposed ownership changes, and his projections remain unverified.

The legislator had separately accused government officials of pressuring public institutions to buy KPC shares before directing them to sell. He claimed the institutions had sold 4.5 billion shares for approximately Sh42 billion and alleged that brokerage commissions had contributed to losses.

Those allegations have not been independently substantiated. Establishing whether the institutions incurred losses would require verified purchase and selling prices, dividends and transaction costs.

Nyoro has also called for the disclosure of KPC's shareholders' register and investment agreement, arguing that the public should understand the terms of the transaction.