MPs call for special audit into National Oil, Rubis deal

Members of Parliament have called for a special audit of the National Oil Corporation of Kenya (NOCK) owing to its partnership with Rubis Energy Kenya.

During a session with NOCK officials on Thursday, the Public Investments Committee on Commercial Affairs and Energy aired grave concerns regarding the corporation's operations, citing a "lack of transparency."

“The National Oil Corporation is no longer a going concern. We are staring at a dead agency that can neither meet salaries nor sustain operations,” Pokot South MP David Pkosing, who chairs the committee, declared. 

The committee now wants the Auditor-General to conduct a Special Audit into the corporation’s dealings, focusing on the circumstances under which Rubis Energy was brought in as a strategic partner.

The audit will also assess the financial and legal implications of the partnership, including whether the capital injected by Rubis constitutes a loan and whether the National Treasury guaranteed it.

According to the committee, NOCK is unable to cater to staff salaries or maintain fuel stations due to billions owed in debt. 

This includes Ksh.3.4 billion owed to KCB and Ksh.2.9 billion owed to Stanbic Bank. 

In the special audit report, the MPs want the Auditor General to determine the financial nature of the capital provided; whether it is a loan, and if so, its terms, interest rate, securities involved, and whether it is backed by a government guarantee. 

Further, the AG is supposed to assess the impact of the Rubis deal on NOCK’s existing contracts with other retailers and review any other relevant information that may shed light on the corporation's future. 

The committee has since directed NOCK to suspend execution of its agreement with Rubis Energy for one month, pending the outcome of the special audit. 

The Auditor-General has until August 14, 2025, to present the report to Parliament.

“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,” Pkosing emphasized.