Remember that C was originally developed for writing operating systems (in this case - Unix) and similar low-level stuff. It is wery close to the system architecture and does not contain any extra features that we want to control, how they exactly work. However, please note that the rest of the operating system, including the programming libraries, does not have to be written in the same language, as the kernel. The kernel functions are provided through a system of interrupts and in fact such programming libraries can be written in any language that supports assembler snippets.
The most popular operating system nowadays are written in C: Windows, Linux and many other Unix clones, however this is not the rule. There are some object-oriented operating systems, where both the kernel and the programming interface are written in an objective language, such as:
- NeXTSTEP - Objective-C
- BeOS - C++
- Syllable - C++
See: Object-oriented operating system on Wikipedia
Note that in Linux, it is possible to write kernel drivers in the languages other than C (however, it is not recommended). Anyway, everything becomes a machine code when it comes to running it.