National Oil Corporation (NOC) Faces Rising Debt of Sh10bn Due to Penalties and Interest Charges

Sunday, 6 October 2024, 11:30

National Oil Corporation (NOC) has seen its loans debt surge from Sh6 billion to an alarming Sh10.12 billion due to penalties and interest. Recent disclosures from the National Treasury reveal this significant rise. Stakeholders are increasingly concerned about the financial stability of NOC as they grapple with escalating debt.
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National Oil Corporation (NOC) Faces Rising Debt of Sh10bn Due to Penalties and Interest Charges

Understanding National Oil Corporation (NOC) Debt Challenges

The recent disclosures from the National Treasury reveal a concerning trend for the National Oil Corporation (NOC). The corporation's loans, originally at Sh6 billion, have surged to Sh10.12 billion as of June this year, primarily due to penalties and interest.

The Impact of Rising Interest Rates

With borrowing from KCB Group and Stanbic Bank, the burden of rising interest rates is taking a toll on NOC's financial health. Stakeholders are urged to monitor NOC's ongoing financial strategies.

Consequences for Stakeholders

  • Potential Risks: Increased debt may jeopardize the corporation's operational stability.
  • Market Implications: A downturn could affect supply chains and energy pricing.

In conclusion, the trend in NOC's growing debt presents various challenges, making it essential for stakeholders to stay informed and prepared.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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