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Banks cut parastatal loans by Sh31bn on Mbadi order
Treasury Cabinet Secretary John Mbadi responds to a question from members of the Bunge la Mwananchi and residents during a dialogue session at Swahilipot Hub on March 7, 2025.
Commercial banks slashed lending to cash-strapped parastatals by Sh30.9 billion in the year ended December 2024, reflecting the impact of high default rates that prompted the Treasury to freeze borrowing approvals and guarantees to public entities with huge debts.
Industry data shows the deep cut pushed the value of outstanding domestic credit to State-owned companies to Sh65.4 billion — levels last recorded in 2015.
