A recent financial audit of the National Oil Corporation portrayed a picture of a firm on its deathbed.
The firm's debt is Sh11.71 billion against equity of Sh1.41 billion as per the 2018-19 audit report.
The state oil marketer got a fighting chance early this year after successful talks involving KCB and the National Treasury. Operational costs have been cut and there are no more salary delays.
The state agency's role is to participate in all petroleum business to ensure the security of supply and stability of petroleum pricing.
This is a strategic role, putting NOC at par with other national assets such as the Kenya Port Authority, Kenya Civil Aviation Authority and the Central Bank of Kenya.
In Qatar, the USA and Russia, a national oil company is highly guarded and the quantity of oil in supply is a top security secret.
While public scrutiny and demand for accountability at NOC are welcome, we should ask whether the firm is well supported to play its role.
Does Kenya have enough oil in its reserves to sustain it for five months in case of a huge global catastrophe?
What would happen if private oil marketers hoarded their stock to increase prices?
Quote of the Day: “No person who is enthusiastic about his work has anything to fear from life.”
Samuel Goldwyn
The Hollywood Mogul was born on August 17, 1882
