Oil scandal: KNTC hard-pressed to explain losing Ksh.6 billion taxpayers money

The admission angered members of the Senate Trade, Industrialization, and Tourism Committee, who accused the organization of treating the loss casually.

During a committee hearing, KNTC's acting Managing Director, Peter Njoroge, acknowledged the significant losses incurred due to price alterations in the oil market.

He attributed the losses to mistakes made by the former management, which led to the taxpayers losing over Ksh. 6 billion.

“It’s unfortunate that this happened; it’s not a good thing. As part of the KNTC management, we owe this country an apology. Moving forward, we have learned our lesson, and those who will guide this organization to the next stage will use these lessons to avoid repeating the same mistakes,” he told the dismayed Senators.

Purity Kimathi, General Manager for Finance & Business Development, explained that KNTC had been selling the edible oil below the contractually agreed price, but she could not provide an explanation or documentation to clarify why this occurred.

“The cost per jerrican of edible oil was about Ksh.4,800, and any jerrican sold below that price resulted in a loss, compounded by other overheads. It’s unfortunate that this happened. We offer our apology, and those responsible should take accountability,” she said to the committee led by Senator Seki Lenku.

However, the admission drew sharp criticism from Senators, who condemned KNTC for misusing taxpayer money and disregarding the concerns of ordinary citizens.

“It’s very unfortunate that after a loss of Ksh. 6 billion, all you can say is that you are sorry. Action must be taken against those responsible; this is a total failure for the hustlers of this country,” retorted Nominated Senator Esther Okenyuri.

“It’s a sad day for our nation. This issue is being treated so casually that we are merely apologizing for the losses accrued by your organization using taxpayer money. This oil was rejected by KBS. What you should be telling us is whether you have researched how many people are developing cancer from using the condemned oil,” posed Nominated Senator Betty Montet.

Marsabit Senator Mohammed Chute, who raised the issue on the Senate floor, urged KNTC to recover funds that were improperly disbursed to companies contracted to supply edible oil.

According to Chute, Multi Commerce Company was illegally paid Ksh. 2.2 billion, while Charma Trade received Ksh. 500 million that should be recovered. “What efforts are you putting in place to recover this money? This only adds to your losses,” he questioned.

In response, Karanja stated that they are engaging with the companies to ensure the money is recovered. “We are in talks with the companies, and we will also engage higher authorities to ensure they pay back the funds. If they refuse, we can pursue legal action, as they have already acknowledged that they owe us,” Karanja said.