The mop-up of excess cash in the parastatals is expected to partly ease perennial liquidity woes amidst shortfalls in tax receipts which usually prompt the Treasury to increasingly borrow cash through the sale of Treasury bills and bonds.
Cash-rich parastatals increased lending to the national government by Sh94.31 billion in the first nine months of the current financial year, coinciding with increased collections from affordable housing and fuel levies which are usually invested pending expenditure.
Analysis of the latest Central Bank of Kenya (CBK) data shows State corporations held about a Sh371.87 billion share in total domestic debt stock at the end of March compared with Sh277.55 billion at the end of the last financial year in June 2024.
