KenGen breaches conditions for Sh18.5bn long-term loans

KenGen has breached the terms attached to Sh18.5 billion worth of long-term loans, a move that could see financiers call back their debts within a year should the power generator fail to get its books in order.

The company in the year ended June saw its current ratio — a liquidity measure of a firm’s ability to pay short-term and long-term obligations — fall below the level set by the lenders as a condition for getting the loans.