Members of Parliament have raised alarm over the partnership between the National Oil Corporation of Kenya (NOCK) and Rubis Energy Kenya, calling for a special audit to scrutinize the deal’s legality and financial impact.
During a Thursday session with NOCK officials, the Public Investments Committee on Commercial Affairs and Energy expressed deep concerns over the corporation’s operational status. Pokot South MP David Pkosing, who chairs the committee, warned that NOCK is on the brink of collapse, stating, “We are staring at a dead agency that can neither meet salaries nor sustain operations.”
The committee has formally requested the Auditor-General to conduct a comprehensive audit focusing on the circumstances under which Rubis was brought in as a strategic partner. MPs want clarity on whether the capital provided by Rubis is structured as a loan, including its terms, interest rates, securities involved, and whether it carries a government guarantee.
NOCK, once a vital player in Kenya’s petroleum sector, is now burdened by heavy debt reportedly owing Ksh.3.4 billion to KCB and Ksh.2.9 billion to Stanbic Bank. MPs argue that the lack of financial stability has compromised the agency’s ability to pay staff or maintain its fuel stations.
Additionally, the audit is expected to determine how the Rubis deal affects NOCK’s existing agreements with other retailers and assess whether the partnership truly benefits the corporation or simply shifts financial risks to taxpayers.
In response to the growing concerns, the committee has ordered NOCK to suspend implementation of its agreement with Rubis Energy for one month, pending the outcome of the audit.
Pkosing emphasized the need for scrutiny, saying, “We must interrogate whether bringing in Rubis without equity participation was the best solution, or just another short-term fix that exposes the Corporation and taxpayers to greater risk.”
The Auditor-General has until August 14, 2025, to present the findings to Parliament. The outcome of this audit could significantly influence the future direction of NOCK and its role in Kenya’s energy sector.
