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The National Oil Corporation of Kenya (NOC) has signed a strategic partnership with Rubis Energy Kenya.
The move is aimed at reviving NOC operations and strengthening its position in the country's petroleum sector.
The deal, which follows the completion of the Specially Permitted Procurement Procedure (SPPP), will see Rubis Energy Kenya provide financial and technical support to NOC as a non-equity strategic partner.
Speaking during the signing ceremony, Energy and Petroleum Cabinet Secretary Opiyo Wandayi hailed the partnership as a significant milestone in restructuring NOC and ensuring its long-term sustainability.
"This collaboration marks a transformative step in strengthening the National Oil Corporation of Kenya, enhancing its capacity, and creating long-term value for citizens. With renewed profitability, NOC will be well-positioned to generate returns and, in the future, begin paying dividends to its shareholder," Wandayi said.
NOC’s Road to Recovery
For years, NOC has grappled with financial struggles, including debts and operational inefficiencies.
NOC CEO Leparan Ole Morintat acknowledged these challenges and the need for external expertise and investment to steer the state corporation back to profitability.
"This sector is highly complex and capital-intensive, requiring substantial investment and operational flexibility to stay competitive. Given the significant demand for government resources, securing shareholder capital injection was not feasible. As a result, NOC sought a non-equity strategic partner to provide the financial support and technical expertise needed to revitalize the company," Morintat explained.
The partnership with Rubis is expected to breathe new life into NOC’s operations by facilitating working capital financing, rebranding, and expanding the corporation’s retail network.
Additionally, it will support the implementation of a new Enterprise Resource Planning (ERP) system to streamline business processes and improve customer experience.
Rubis Energy Kenya, a subsidiary of French multinational Rubis Energie, operates an extensive network of service stations across East Africa.
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The Rubis Managing Director Olivier Sabrié praised the importance of strategic collaborations in driving growth.
"In today’s dynamic market environment, partnerships are key to driving growth and success. By leveraging diverse expertise, resources, and networks, we can create a competitive edge and generate value for all stakeholders involved," Sabrié noted.
As part of the agreement, Rubis will also provide training, capacity building, and skills transfer to NOC staff while collaborating on fuel card business to enhance customer engagement.
Impact on Kenya’s Energy Sector
The NOC-Rubis partnership aligns with the government’s broader plan to secure Kenya’s petroleum supply, stabilise fuel prices, and reduce the cost of living.
By restoring NOC’s financial health, the deal could help position the state-owned corporation as a competitive player in the oil and gas market.
Additionally, with Rubis Energy Kenya already invested in renewable energy, the partnership may open doors for future collaboration in green energy solutions.
While the partnership has been lauded for its potential to rejuvenate NOC, industry stakeholders will be keenly watching to see if this move can reverse the corporation’s past struggles and make it a formidable force in Kenya’s energy sector.