Time flies with great content! Renew in to keep enjoying all our premium content.
Prime
Banks cut lending to parastatals by Sh60bn as reforms raise risk
Banks should assess each state corporation on the strength of its own balance sheet, profitability and cash flows rather than assumptions of implicit government backing.
Commercial banks have cut lending to State corporations by more than two-thirds, or Sh59.7 billion in two years as legal reforms and tighter National Treasury controls prompt lenders to reassess the creditworthiness of public enterprises.
Central Bank of Kenya (CBK) data show net domestic credit to parastatals fell to Sh28 billion in March 2026 from Sh87.7 billion in March 2024, a decline of 68.1 percent.
