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"id": 1169083,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1169083/?format=api",
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"speaker_name": "Sen. Olekina",
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"legal_name": "Ledama Olekina",
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"content": "Instead, the Principal Secretary (PS), State Department of Petroleum and Mining, Mr. Andrew Kamau, has tried to remove the 30 per cent allocation set aside for NOCK to import petroleum into this country. Madam Deputy Speaker, as a Member of the Standing Committee on Energy, I have sat in numerous meetings where the PS has indicated to us that there were no such things in law that set aside an importation of 30 per cent of petroleum products to the NOCK. It is after our Committee showed him Legal Notice No.96 of 2010, that he agreed that NOCK can import oil into the country at a minimum of 30 per cent. Madam Deputy Speaker, this begs the big question. Why is it important for the NOCK to participate in the importation of fuel in the country? The answer is simple. If the NOCK was involved in the importation of fuel today, Kenyans would be paying Kshs30 to Kshs40 less on petroleum products. This is because NOCK would be able to get into long-term supplier contracts with deep discounts to start with. Additionally, NOCK will be buying in bulk as it has the mandate for maintaining the strategic reserves. The PS, as the accounting officer, has however stood in the way of the NOCK, preventing it from engaging with strategic investors who are willing to give NOCK a lifeline. Madam Deputy Speaker, on 10th June, 2022, the Ministry of Petroleum and Mining together with EPRA held a stakeholder’s engagement with Oil Marketers’ Companies normally referred to as OMC to deliberate on new regulations in the petroleum sector. Top on the agenda was ways to strangle NOCK. Having realised that NOCK is mandated by law to import at least 30 per cent of petroleum into the country, they have made regulations that will curb NOCK importation at 30 per cent. Madam Deputy Speaker, initially, it was the minimum of 30 per cent. However, because they have realised that it is within the law and is protected by law, they are now amending the regulations, so that it curbs the importation by NOCK to 30 per cent. This is despite the fact that NOCK, if well capitalized, can import fuel for the whole country at a discount. The PS advocates for private companies to import fuel into the country. There is nothing wrong with OMCs. However, if a law has set aside 30 per cent to be imported by a State corporation, that ought to be respected. Madam Deputy Speaker, I urge the Committee on Delegated Legislation led by the distinguished Senator from Mombasa County, Sen. Faki, to revoke those regulations when they are submitted to the Senate. The NOCK should be allowed to import as much as 100 per cent of the fuel consumed in the country. In 2020, the Principal Secretary (PS) while answering questions before my Committee, the Standing Committee on Energy, indicated that should Tullow Oil leave Kenya, the country would be obligated to pay two billion Dollars because of the capital expenditure spent in the exploration of oil. I can confirm that Kenya would not be obliged to pay anything because the exploration license for Tullow Oil has expired. The question that I have is why the Principal Secretary indicated that Kenyans would have to pay two billion Dollars to Tullow Oil? The PS has also been on record,"
}