Sh3 Billion Rubis Deal Puts ‘Dead’ National Oil Corporation Under Scrutiny

A parliamentary session to examine the financial health of the struggling National Oil Corporation of Kenya (NOCK) was postponed on Wednesday after lawmakers raised alarm over the state of the corporation and a controversial Sh3 billion agreement with oil marketer Rubis.

The Public Investments Committee on Commercial Affairs and Energy, chaired by Pokot South MP David Pkosing, had scheduled to review NOCK’s audited accounts from the 2018/19 to 2022/23 financial years. However, the session was adjourned to Thursday to allow for further scrutiny, with Members describing NOCK as a “dead” entity with unclear operations and murky finances.

During the session, the Committee questioned the parastatal’s recent move to secure a Sh3 billion loan from Rubis Energy, reportedly aimed at reviving the corporation. NOCK CEO Leparan Gideon Ole Morintat, who appeared before the MPs, admitted that the state-owned oil firm is in deep financial trouble and said the agreement with Rubis was meant to help settle debts and stabilize operations.

“We are trying to get NOCK back on its knees,” said Morintat.

But lawmakers were not convinced. The Committee directed the Auditor General to conduct a special audit on NOCK’s contracts and financial dealings, especially the loan agreement with Rubis, and submit findings within two weeks.

“There is crucial information we need as Members of this Committee to understand what exactly is ailing NOCK and whether it can be salvaged,” said Embakasi East MP Babu Owino.

MPs expressed concern that the deal might be a backdoor attempt to sell off the corporation. Eldas MP Adan Keynan questioned the terms of the agreement and whether Rubis had interests beyond the loan.

“Borrowing Sh3 billion from a private entity like Rubis to resuscitate NOCK is criminal. Whoever is pushing this deal is a saboteur,” said Keynan.

He warned that the fate of NOCK could mirror that of Telkom Kenya, whose current ownership structure remains unclear.

The Committee also questioned why the National Treasury had not stepped in to support NOCK directly instead of allowing a private player to fill the gap.

“Why can’t the Treasury step in with the Sh3 billion? Are there hidden interests?” posed Chairperson Pkosing. “This Committee recently halted a Public-Private Partnership between the Kenya Airports Authority and Adani Group after irregularities were raised. We will do the same here if necessary.”

Babu Owino, using a metaphor, remarked: “NOCK was abducted and killed. All that remains is to plant flowers at its grave.”

Following the heated session, the Committee resolved to suspend all transactions involving NOCK, including the Rubis deal, until further notice.

“Looking at this issue holistically, we want all NOCK operations halted until the Committee makes a decision,” added Keynan.

The lawmakers said they are determined to uncover the full truth behind NOCK’s financial crisis and prevent what they described as an impending sell-off disguised as a rescue plan.

“We, as Parliament, are a key arm of government. The Executive may make decisions, but it is our job to interrogate those decisions and ensure there is value for taxpayers’ money,” Keynan emphasized.