7 August, 2025After intense negotiations and the threat of industrial action, the Kenya Petroleum Oil Workers Union (KPOWU), an affiliate of IndustriALL Global Union, has secured a major breakthrough with the Kenya Pipeline Company Limited (KPC), paving the way for collective bargaining for the 2025–2029 period.
The agreement follows a seven-day strike notice issued by the union on 24 July, citing long-standing disputes over workers’ rights, performance incentives, and the fate of employees from the soon-to-be-dissolved Kenya Petroleum Refineries Limited (KPRL). The deal also brings critical issues into focus regarding KPRL’s closure and the future of Kenya’s energy infrastructure.
KPOWU, representing workers from both KPC and KPRL, had raised a range of pressing demands. These included the seamless transfer of KPRL workers to KPC with retention of existing terms and conditions, the elimination of discriminatory performance incentives, protection of union officials from intimidation, and urgent attention to unresolved claims, some dating as far back as 2016, related to overtime, standby allowances, and meals.
The union also flagged concerns around corruption at KPC’s Eldoret depot and called for accountability and transparency within the company.
Negotiations, mediated by the energy and petroleum cabinet secretary Opiyo Wandayi, led to meaningful concessions from KPC. Among them:
- A suspension of shift changes pending the outcome of negotiations
- Standardization of performance incentives and a review of the appraisal system
- Immediate processing of overdue claims through a 24/7 online platform, with payments to be made by 31 August
- Integration of KPRL workers into KPC with terms retroactively applied from 2016
- A commitment to merit-based promotions
- Suspension of KPC’s proposed privatization pending further consultation
These outcomes mark a significant victory for KPOWU in its ongoing fight for fairness and justice in Kenya’s oil and gas sector.
“The agreement is a step towards ending serious injustice to workers,”
said George Okoth, KPOWU general secretary.
IndustriALL regional secretary for Sub-Saharan Africa, Paule-France Ndessomin, welcomed the outcome, expressing solidarity with the union:
“We support KPOWU in their demands for better working conditions and defending workers’ rights,” she said, calling on KPC to continue negotiating in good faith.
KPC, a state-owned enterprise under the Ministry of Energy, plays a central role in Kenya’s petroleum logistics, transporting and storing fuel via a pipeline network that spans from the port city of Mombasa to key inland centres including Nairobi, Nakuru, Kisumu, and Eldoret.
The company’s acquisition of KPRL in 2023 was aimed at enhancing Kenya’s storage and distribution capacity. As KPRL’s operations are wound down, the integration of its workforce into KPC represents not only a labour victory but a critical step in maintaining stability in the country’s energy supply chain.