(NAIROBI, KENYA) – A former associate has sued Rock Investment Bank for KES 137.2 million ($1.06 million / GBP 803,000) in commission tied to the firm’s advisory role on the Kenya Pipeline Company initial public offering in March 2026.
The government raised KES 106 billion ($818 million / GBP 620 million) from the sale of a 35% stake to the public.
Patrick Ouma Kwome, a former associate at Rock Investment Bank, formerly Rock Advisors Limited, says the firm withheld commissions arising from his role in the successful KPC listing.
Rock was Faida Investment Bank’s transaction partner on the KPC IPO and handled key technical, financial modelling, proposal and transaction structuring duties under their fee sharing arrangement.
Mr Kwome filed the claim at the Employment and Labour Relations Court in Nairobi, accusing Rock Investment Bank of breaching his employment contract. He is seeking payment, damages and orders preserving fees payable from the transaction. The investment bank has yet to file a response.
The legal dispute follows a collaboration between Faida, the appointed lead transaction adviser, and Rock, which handled key technical and coordination duties. Under their arrangement, Rock was to receive 70% of net fees, while Faida retained 30%, according to Mr Kwome’s claim.
The parties were later referred to mediation, but the process did not resolve the disagreement. Rock received fees paid by Faida in June and July totalling about KES 1.47 billion ($11.3 million / GBP 8.6 million), representing its alleged 70% share.
Mr Kwome says his employment contract dated 1st April 2025 entitled him to a gross monthly salary of KES 150,000 ($1,158 / GBP 878) and commissions of 10% of net revenues from projects originated by Rock, or 25% where he originated the project.
He called the commission structure “a fundamental component” of his compensation and incentive to deliver the transaction.
He says the KPC transaction was originated by Rock under a consultancy agreement executed in November 2025 and backdated to July 2024. Rock was responsible for preparing the technical and financial proposal, coordinating experts and organising meetings with the Privatisation Authority.
Mr Kwome says he helped lead the proposal process, developed the financial model underpinning the transaction, drafted data room protocols and advised on the proposed 1,000 for 1 share split.
He says he helped secure and structure the mandate, developed the financial model, prepared Rock’s proposal and took part in fee negotiations with the Privatisation Authority.
He also took part in negotiations between Faida and the Privatisation Authority and appeared as a key contact person in minutes of pre contract negotiations held on 25th November 2025.
The claim says the IPO generated advisory, success and placement fees totalling KES 1.95 billion ($15 million / GBP 11.4 million) after direct transaction expenses. Rock’s 70% share was calculated at KES 1.37 billion ($10.6 million / GBP 8 million), while Mr Kwome’s claimed 10% commission was put at KES 137 million ($1.06 million / GBP 803,000). He alleges Rock later sought to alter its fee sharing arrangement with Faida after the transaction succeeded, reducing the amount from which his commission would be calculated.
Rock’s role was as Faida’s collaborating transaction partner and the firm responsible for much of the technical, financial modelling and proposal work that helped secure and execute the mandate.
The KPC Information Memorandum states that Faida would receive KES 98.6 million ($761,000 / GBP 577,000) in advisory fees and a success fee of 1% plus VAT on gross proceeds.
It estimated placement fees at 1.5%, or KES 1.59 billion ($12.3 million / GBP 9.3 million). The offer involved the sale of 65% of KPC for targeted gross proceeds of KES 106.3 billion ($820 million / GBP 622 million).
“The respondent coordinated the preparation of the Information Memorandum by organising and collating reports and information from experts, entities and all relevant sources, for the engagement of investors in addition to preparation of other transaction related documentation,” the claimant says in the court papers.
The advisers and other intermediaries were expected to share about KES 3 billion ($23.2 million / GBP 17.6 million) from the sale, including banks, brokers, lawyers, accountants and communication firms.
Mr Kwome alleges that after the transaction succeeded, Rock declined to discuss his commission, excluded him from correspondence and meetings, and started disciplinary proceedings intended to pressure him into abandoning the claim.
He further alleges that the company’s managing director indicated Rock would not honour its obligations and would seek to alter the Faida agreement to reduce the amount payable to him. The allegations await trial.
He also claims that his exclusion from transaction discussions, the refusal of his commission and the subsequent disciplinary proceedings created conditions that forced him to resign.
Mr Kwome resigned after issuing a two month notice dated 27th April 2026, saying the alleged hostile environment made continued employment untenable.
He asks the court to declare the non payment a fundamental breach, award the claimed commission, grant 12 months’ salary for constructive dismissal and preserve outstanding transaction funds pending determination.