MPs halt National Oil Corporation activities pending operations probe
The National Oil Corporation of Kenya (NOCK) is facing fresh scrutiny after Members of Parliament have ordered the suspension of all its operations pending a special audit into its financial and operational health.
In a statement posted on the Parliament’s Facebook page on Wednesday, July 30, 2025, the Public Investments Committee on Commercial Affairs and Energy, chaired by Pokot South MP David Pkosing, made the directive after raising serious concerns over the parastatal’s viability during a failed hearing to examine NOCK’s audited accounts.
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The committee, which was scheduled to review NOCK’s audited accounts for the 2018/19 to 2022/23 financial years, postponed the session after determining that more scrutiny was needed into the corporation’s operations and finances.
“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,” Eldas MP Adan Keynan stated as quoted in the statement.
Contentious deal
Central to the lawmakers’ concerns is NOCK’s Ksh3 billion debt agreement with an oil marketer, a deal the corporation said was necessary to settle debts and revive its struggling operations.
NOCK CEO Leparan Gideon Ole Morintat, who appeared before the committee, admitted that the State-owned entity was in deep financial trouble, describing the arrangement with the oil marketer as a bid “to get back to its knees.”
“Borrowing Ksh3 billion from a private entity to resuscitate NOCK is criminal. Whoever is pushing this deal is a saboteur,” Keynan declared as MPs expressed scepticism about the deal’s legitimacy and motives.
Possible takeover
Keynan raised fears that the deal could pave the way for NOCK’s takeover by private interests, drawing parallels with other controversial privatisations.
“We know someone might be out there trying to grab NOCK, just like Telkom Kenya, which, up to today, we still don’t know who owns,” Keynan warned.
Committee Chair Pkosing questioned the Treasury’s apparent silence on the matter, asking why the government had not considered a bailout instead of leaving NOCK dependent on a private player.
“Why can’t the National Treasury step in with the Ksh3 billion? Are there hidden interests?” he asked.
“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,” he added.
Audit ordered
The committee directed the Auditor General to conduct a special audit of NOCK’s operations, including the controversial debt arrangement, within two weeks.
“We are being informed that they have an existing contract. There is crucial information we need as Members of this Committee to understand what exactly is ailing NOCK and whether it can be salvaged,” Embakasi East MP Babu Owino said.
The lawmakers also ordered that all transactions involving NOCK, including the deal with the oil marketer, be frozen until the committee completes its investigation.
“Looking at this issue holistically, we want all NOCK operations halted until the Committee makes a decision,” Keynan added.
The MPs are scheduled to reconvene on Thursday, July 31, 2025, after internal deliberations to determine the next steps in their investigation.
