MPs Demand Urgent Reforms To Revive Struggling National Oil Corporation

Members of Parliament have raised concerns over the National Oil Corporation’s (NOC) continued underperformance, questioning its inability to generate profits despite receiving consistent government budgetary allocations.

Legislators are now calling for urgent reforms to salvage the corporation, especially in light of the thriving performance of its competitors in the oil sector.

During a session with the National Assembly Committee on Energy, officials from the Ministry of Energy and Petroleum appeared to defend the corporation’s financial struggles as part of deliberations on Supplementary Estimates No. 2 for the 2024/25 financial year.

However, lawmakers expressed frustration over NOC’s persistent losses, arguing that continued funding without clear returns was unsustainable.

“It is time we reconsider how NOC operates to prevent further wastage of public funds. We cannot keep allocating money to an entity that continues to run at a loss,” said Kilifi South MP Ken Chonga.

Committee Chairman Mwala MP Vincent Musyoka echoed these concerns, pointing out inconsistencies in NOC’s financial reporting. “NOC appears to be profitable on paper, but in reality, it is struggling to stay afloat,” Musyoka stated.

Appearing before the committee, Senior Chief Finance Officer Dismas Ogot, representing the Principal Secretary in the State Department for Petroleum, cited outdated infrastructure and financial mismanagement as key hurdles affecting NOC’s performance. He revealed that the corporation has been forced to seek a strategic partner with the financial muscle to help turn around its operations.

“Most of our petrol stations are in a deplorable state and in need of urgent repairs. A significant amount of money is required to restore these facilities,” Ogot told the committee.

He also disclosed that NOC has been struggling to meet key financial obligations, including the timely payment of employee salaries, further complicating its recovery efforts.