Responses to liberalization of the economy by national oil corporation of Kenya

Abstract

The Petroleum industry in Kenya has undergone changes that have tremendously affected the state of competition in the industry. The most recent fundamental development in the industry was its liberalization in October 1994 that led to the entry of new companies. The study sought to determine how National Oil Corporation of Kenya (NOCK) has responded to the liberalization. The study was based on primary data, which was collected using a questionnaire and personal interviews. The data obtained was then analysed and interpreted using content analysis. The findings of this study revealed a number of responses that National Oil Corporation of Kenya has used to counter the effects of liberalization. In responding to liberalization, the Corporation has used a combination of strategies, which includes strategic planning, capital injection, capacity building, organizational structure, building of retail outlets, and adopting technological change. Six out ofthe identified eight executives were interviewed and in view of the findings, a few recommendations have been suggested. Firstly, NOCK should lobby for reasonable autonomy from the government of Kenya as by reason of being a state corporation it is exposed to bureaucracies making it difficult to respond a changing environment. Secondly, the Corporation evidently needs to consolidate its strengths and capabilities in order to develop a unique identity that can work towards rebuilding and enhancing a strong corporate image.