National Oil Corporation of Kenya (NOCK) CEO Maryjane Mwangi on Wednesday was dropped from her post.
Daily Nation reported that the parastatal let go Ms Mwangi in a move that exposed its deep debt trouble, with various banks threatening to pull out from financing the state corporation.
In a meeting organized by the parastatal's board, the oil marketer claimed that the CEO had opted not to renew her contract, therefore, leaving the corporation.
"During a board meeting held on October 9, 2019, the CEO of National Oil Corporation of Kenya, Maryjane Mwangi, communicated her decision not to renew her contract.
"In this regard, the board accepted her decision and has with immediate effect appointed James Nyamongo to serve as acting CEO pending recruitment of a substantive CEO," Nock wrote in a statement.
This, however, contradicted the norm in that, when a top executive opts not to renew a contract, they remain in office until the end of their current time.
The National Oil board had in the past been accused of being hostile to their chief executives if they did not toe the line. Tenders that have caused friction at the corporation include the oil jetty and the mwananchi gas project, both of which hit a dead end.
Two banks reported funding Nock in its oil purchases but the parastatal and failed to pay back. This meant that it could soon run out of oil in its National Oil petrol stations countrywide, if the banks do not lend it more money.
According to bank letters, NOCK had been invited to two meetings which failed to bear fruit. The firm was then given 14 days to regularise its debt or face sanctions.
By September 13, the overdraft account had Ksh814.7 million in arrears that had lasted 97 days. The other term loans the bank wants to recover include Ksh9.5 million that was 13 days in arrears and Ksh23.3 million that was 35 days in arrears.
Ksh6 million and Ksh11.3 million loans have also defaulted. In total, the bank is demanding Ksh865 million.
The firm is set to appear before Parliament's Public Investment Committee (PIC) to answer questions raised by the auditor general in previous financial statements.
