Data from Treasury reveal that state corporations are yet to repay up to Kshs 920 billion bailout cash that the government – taxpayers, provided the entities to boost their operations and position them for profitability.
The government had as of June 30, 2022, lent the entities more than Kshs 1 trillion of which Kshs 973 billion was disbursed, according to treasury data.
Only Kshs 52 billion of the disbursed amount has been repaid. In some instances, the loans were written off, begging the question whether taxpayers would recover the rest.
The leading state corporation is the Kenya Railways which is yet to repay Kshs 566 billion, emerging as holding the largest share of the outstanding guaranteed loans.
Kenya Electricity Generating Company (KenGen) is yet to repay Kshs 81 billion it was bailed out by state.
Kenya Power comes third with an unpaid Kshs 56 billion followed by Athi Water Services Board which had a pending Kshs 47.1 billion as of June 30, 2022.
Read: Treasury Given Powers to Privatize Public-Owned Enterprises
Kenya Airways PLC is also among the biggest debtors with Kshs 31.2 billion yet to be paid, with reports showing it has not made any repayments lately.
The Kenya Mortgage Refinancing Company is also yet to pay Kshs 9.9 billion, Kshs 9.7 billion for the case of Tanathi Water Services Board, and Mumias Sugar Company Kshs 3 billion and about Kshs 10 billion for irrigation board, water pipeline corporation, and Northern Water Services board.
Treasury Cabinet Secretary Prof Njuguna Ndung’u said the debts will be tracked and assessed against overall sustainability levels of the fiscal commitments.
“The evolving public debt structure and fiscal deficit will inform the review strategy for management of costs and risks of the public debt,” the CS said in a memorandum to Parliament on the 2023-24 budget.
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