The latest report by the Auditor General covering the period 2020/2021 has revealed that the National Oil Corporation of Kenya is technically insolvent and can only survive if the government comes to its aid.
In the report, the auditor reveals that there is uncertainty in the Corporation’s ability to continue as a going concern after it recorded a loss of Ksh. 969,798,000 in 2020 raising its accumulated losses to Ksh. 4,025,234,000 from Ksh. 3,055,436,000 in 2020.
According to the Auditor General, these events or conditions, along with other matters, indicate material uncertainty regarding the Corporation’s ability to continue as a going concern. The Auditor General in her conclusion warned that the Corporation is technically insolvent and its continued existence as a going concern is dependent upon the financial support of the Government, bankers, and its creditors unless Management puts in place measures to improve the performance of the Corporation and to reduce reliance on financial support from the shareholders.
Eyes are now on the Corporation’s board chairman Eng. Patrick Obath. He was appointed to the board by former President Uhuru Kenyatta in October 2021. Also on the radar is the Chief Executive Officer Leparan Gideon ole Morintat who was appointed in March 2020.
