Tokayev: Arrests of Samruk-Kazyna and KTZ chiefs signal large-scale corruption in state companies

Kazakh President Kassym-Jomart Tokayev, speaking at a Security Council meeting on November 13, described the detention of the heads of the Samruk-Kazyna fund and the national railway company Kazakhstan Temir Zholy (KTZ) as evidence of large-scale corruption in state enterprises.

"This is an extremely serious signal of widespread corruption in state companies," Tokayev said. He stressed that the investigation has only just begun and that disclosing details would be premature.

On November 11, the Anti-Corruption Agency of the National Security Committee (KNB) detained Samruk-Kazyna head Nurlan Zhakupov, KTZ head Yelzhas Otynshiyev and several other people on suspicion of a corruption offence. The following day the KNB confirmed that both top managers are in custody, without disclosing details due to pre-trial restrictions.

Zhakupov had headed the fund since April 2023; Otynshiyev had led KTZ since July 2024, having previously held senior positions at Samruk-Kazyna itself. Neither has been convicted.

Tokayev instructed the government and supervisory bodies to present proposals by November 24 for reducing corruption risks in state companies, while demanding that their operations not be halted.

Of particular concern is the fate of KTZ's IPO. The company had been considering a listing on the exchanges of Kazakhstan, London and Hong Kong; on November 11 — the day of the arrests — the Hong Kong Stock Exchange published the company's post-listing information pack. Financial experts do not rule out a postponement of the placement due to the absence of top management. KTZ's debt as of September 30 stood at 3.78 trillion tenge ($8.5 billion); creditors granted a waiver on a debt covenant breach until November 30.

Samruk-Kazyna said the fund and its subsidiaries continue to operate as normal and will fulfil their obligations to investors and partners. Tokayev noted that this is the first major corruption case in state companies since the new Constitution, which enshrined the principle of "Law and Order", was adopted in a referendum on March 15, 2026.