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A committee of Kenya’s National Assembly has ordered a special audit into a controversial financial partnership between the National Oil Corporation of Kenya (NOCK) and Rubis Energy Kenya, raising serious questions about the deal’s transparency and the financial future of the state-owned oil firm.
The directive was issued by the Public Investments Committee on Commercial Affairs and Energy, led by David Pkosing, who represents Pokot South Constituency. The committee instructed the Auditor General to begin immediate investigations into the agreement between NOCK and Rubis Energy, which involves an injection of funds to support working capital and capital expenditure for the struggling oil corporation.
Pkosing said the lawmakers are concerned that the deal could leave NOCK even more exposed financially, rather than solving its ongoing cash crisis. During the committee’s sitting on Thursday, July 25, 2025, the members directed that all ongoing transactions and plans related to the Rubis deal be suspended for one month pending the outcome of the audit.
“The Committee directs that NOCK suspend the execution of the agreement between the Corporation and Rubis Energy for a period of one month until this Committee makes a determination on the outcome of the Special Audit Report,” said Hon. Pkosing.
According to the committee, the situation at NOCK has become critical. Documents presented during the meeting showed that the oil firm is technically insolvent, with debts amounting to over Sh7.4 billion. The biggest creditors include Kenya Commercial Bank (KCB), which is owed Sh3.4 billion, and Stanbic Bank, which is owed Sh2.9 billion.
The lawmakers said the financial crisis has left the company struggling to pay staff, handle recurrent expenses, and maintain its fuel stations across the country. This has raised fresh concerns about the company’s capacity to continue operating effectively without urgent restructuring or bailout support.
NOCK’s Managing Director, Leparan Morintat, appeared before the committee and defended the Rubis deal, but the MPs were not satisfied. They said there was not enough clarity about the terms of the agreement, how Rubis was selected, and the potential risks to taxpayers and other business partners.
The committee directed the Auditor General to submit the Special Audit Report by August 14, 2025. The report is expected to provide a detailed breakdown of the partnership, including whether the funds injected by Rubis Energy constitute a loan or equity, the interest rate, repayment terms, and whether the deal includes any guarantees by the National Treasury.
Lawmakers are also demanding to know how the deal would affect NOCK’s existing contracts, especially those in the downstream operations, where the corporation had previously leased out its retail infrastructure — such as petrol stations — to third-party operators.
“Given that NOCK had leased its retail infrastructure to third-party retailers, we want to determine the implications of the Rubis Energy Kenya agreement on existing contracts, particularly if NOCK decides to resume downstream operations,” the committee stated.
The audit will also explore whether the decision to engage Rubis was made through proper legal and commercial procedures, and if any irregularities exist within the contract.
Some members of the committee voiced concerns that onboarding Rubis may offer only short-term financial relief while leaving long-term sustainability unaddressed. Others warned that if the deal turns out to be flawed, Kenyan taxpayers could end up footing the bill if the corporation defaults or collapses.
Citing Article 95(2) and Article 201(d) of the Kenyan Constitution, the committee said Parliament is acting within its mandate to safeguard public funds and ensure transparent governance of state-owned enterprises. The lawmakers also referenced Section 34 of the Public Audit Act, 2015, which allows Parliament to order special audits into any matter involving public finances.
The issue came to light during the committee’s ongoing scrutiny of NOCK’s audited financial reports for the 2018-19 to 2023-24 financial years. The outcome of the special audit could influence future decisions on whether the corporation should undergo restructuring, seek new partnerships, or adopt alternative strategies for recovery.
While supporters of the Rubis partnership argue that the injection of capital is necessary to keep NOCK alive, critics say the deal is not transparent enough and may deepen the company’s woes. As the audit deadline approaches, many observers believe that the findings will not only shape the future of NOCK but also set an important precedent for how public-private partnerships in Kenya’s energy sector should be handled.
