Energy CS Opiyo Wandayi appoints three directors to National Oil

Nairobi, Kenya — Energy and Petroleum Cabinet Secretary Opiyo Wandayi has appointed three new members to the National Oil Corporation of Kenya (NOCK) Board.

Michael Rubia, Albert Ojonjo, and Lokiru Ali Mohammed have been appointed as non-executive directors to serve on the Board of the parastatal for a term of three years. The trio will join NOCK at a time when the corporation is undergoing critical financial challenges in a rapidly evolving energy landscape. Wandayi announced the new appointments in a gazette notice on Friday.

In exercise of the powers conferred by section 6 (1) (e) of the State Corporations Act, the Cabinet Secretary for Energy and Petroleum appoints— Michael Rubia, Albert Ojonjo, Lokiru Ali Mohammed, to be members of the National Oil Corporation of Kenya Board, for a period of three (3) years, with effect from the 15th November, 2024

Energy and Petroleum Cabinet Secretary Opiyo Wandayi

As the new Board members take office, their immediate priorities will include stabilizing NOCK’s finances, enhancing transparency, and returning the loss-making parastatal to profitability. NOCK was established in 1981 to champion Kenya’s exploration, development, and distribution of petroleum resources. The corporation’s mandate includes securing the country’s energy needs, managing strategic oil reserves, and providing affordable fuel alternatives.

The appointment of new directors to the company’s Board comes more than a year after the Cabinet in August 2023 approved the restructuring of National Oil as part of renewed efforts to return the struggling parastatal to profitability. National Oil’s liabilities hit Ksh11.45 billion against assets of Ksh2.34 billion in the year to June 2023, a time when the company posted a loss before tax of Ksh2.34 billion. At its peak, National Oil had a footprint of 110 service stations but has quickly lost market share to efficient private firms that currently dominate the oil marketing business in Kenya.

As part of efforts to restore the company’s glory days, NOCK and Rubis Energy Kenya Plc last month applied to the Competition Authority of Kenya (CAK) to be exempted from certain sections of the Competition Act to enable them execute a non-equity strategic partnership. The non-equity strategic partnership agreement will see Rubis inject Ksh6 billion into National Oil which will be invested to revamp the government-owned company’s operations. In turn, Rubis will take 30% of the profits generated by National Oil during the 8-year period while National Oil will retain 70% of the profits.

brian@theenergyreview.com