The state-owned National Oil Corporation of Kenya entered its March “rescue” deal with French energy firm RUBiS Energy already in a condition that the Auditor General regarded as terminal.
- By the end of the 2023/24 financial year, National Oil was in technical insolvency, as liabilities were KSh 11.6 billion higher than its assets.
- The company’s accumulated losses had swelled up to KSh 8.3 billion and had defaulted on a KSh 6.54 billion loan, which carried an additional KSh 2.43 billion in penalty interest.
- National Oil had reported a KSh 2.23 billion loss before tax for the year, missed its revenue target by more than KSh 90 billion, and failed to maintain strategic fuel reserves.
In March this year, a Cabinet-approved plan saw the…