MPs order special audit of NOCK in face of Sh3b Rubis loan
By Mercy Mwai, August 1, 2025Lawmakers have ordered the Auditor-General Nany Gathungu to carry out a special audit of the National Oil Corporation of Kenya (NOCK) and table its report on or before August 14 following revelation that it is technically insolvent.
The MPs who sit in the Public Investments Committee on Commercial Affairs and Energy issued the directive after poking holes in the planned bailout by Rubis Kenya of Sh3 billion to enable them pay up pending debts and run operations.
The Committee, chaired by Pokot South MP David Pkosing, yesterday suspended its session with NOCK, citing grave concerns over the financial mismanagement, rising debt, and what members termed a “troubling lack of transparency” around the corporation’s operations and partnerships.
Pkosing said the decision is grounded in Article 95(2) of the Constitution, which empowers the National Assembly to represent the interests of Kenyans, and Article 201(d), which demands prudent and responsible use of public funds. The corporation owes its creditors a combined liability of Sh7.4 billion with Kenya Commercial Bank owing them Sh3.4 billion and Stanbic Bank Sh2.9 billion.
It is also unable to meet its recurrent cost, pay salaries and maintain its stations. Said Pkosing: “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.”
He added: “The Special Audit Report be submitted to the National Assembly on or before August 14, 2025. The Committee directs that NOCK suspends the execution of the agreement between the Corporation and Rubis Energy for a period of one month until this Committee makes determination on the outcome of the Special Audit Report.”
Legal implications
The audit will assess the financial and legal implications of the partnership, including whether the capital injected by Rubis constitutes a loan and if it was guaranteed by the National Treasury.
This comes after the committee heard that NOCK leased its retail infrastructure to third-party retailers, raising questions about the implications of the agreement.
It will also focus on existing contracts with other retailers given that NOCK had leased its retail infrastructure (fuel stations) to third-party retailers, and determine the implications of the Rubis Energy Kenya agreement on existing contracts, particularly in the event NOCK resumes downstream operations.
Further, the audit will also determine if the capital is a loan, its terms, interest rate, securities involved, and whether it is backed by a government guarantee.
Said Pkosing: “The Committee directs the Auditor General to undertake a Special Audit guided by the following Terms of Reference (TORs): Nature of Partnership, working Capital: Ascertain whether the capital advanced to the Corporation constitutes a loan and Existing contract with other retailers.”
He added: “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.”