The state-owned National Oil Corporation of Kenya (Nock) is grappling with massive losses amid stiff competition from international oil firms and delayed compensation from the National Treasury over the price stabilization that started in April 2021.
The corporation reported a six month loss of Sh689 million in December 2021 alone, which is estimated to hit up to Sh1.4 billion for the full year.
The corporation is now appealing for a Sh13 billion loan from the National Treasury to clear debts and manage operating costs.
Nock CEO Gideon Morintat said that Sh6.6 billion will pay loans, Sh3 billion for oil exploration and Sh3 billion will cater for operating costs.
“If these things do not happen, the easiest thing to do is to close Nock,” Nock’s CEO told the National Assembly energy committee on Tuesday.
The ministry of petroleum estimates Nock’s monthly operating costs at Sh 70 million.
The struggles of parastatals are not new in the country, with Kenya Airways and Kenya Power registering losses in the last few years.
