Longer wait for fate of troubled National Oil - Beaking Kenya News

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Saturday, 10 October 2020

Longer wait for fate of troubled National Oil


Parliament will wait longer to know the fate of cash-strapped National Oil Corporation of Kenya (Nock) after Petroleum and Mining Cabinet Secretary, John Munyes skipped a meeting scheduled to discuss the matter.

The session between the CS and the Senate committee on Energy chaired by Nyeri Senator Ephraim Maina failed to kick-off Thursday after he excused himself to attend a Cabinet meeting.

Mr Munyes instead proposed to meet the senators next Wednesday October 14.

The House team had summoned Mr Munyes to shed light on the government’s plans to rescue the State oil company.

Nock last week disclosed that it risks asset seizure and auction over Sh5.3 billion defaulted bank loans.

A brief presented to the committee by Nock showed it owes KCB Sh3.8 billion and Stanbic Bank Sh1.5 billion in loan principal and interest.

KCB, in a letter dated August 13, demanded full settlement of the loan in 30 days, failing which the bank would institute recovery measures.

“This is a real threat and should nothing be done by the shareholder, the Nock may be wound up,” Gideon Morintat, the Nock chief executive, told the Senate committee on Energy.

Nock said KCB had reneged on an April 2020 plan that consolidated the loans and gave a moratorium on principal and interest up to February 2021 in anticipation of a lump sum repayment.

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