Time flies with great content! Renew in to keep enjoying all our premium content.
Prime
Co-op Bank, Kenya Power among Sh21bn State debtors
Cooperative Bank and Kenya Power are among 31 institutions that have defaulted on loans owed to the government amounting to Sh21.3 billion, Auditor- General Edward Ouko has said.
Mr Ouko’s report covering the 2014/15 financial year shows that taxpayers are yet to recover money from the firms, some of which are doing well in their industry.
“These institutions have not made any efforts to repay their respective loans upon maturity,” he said.
Cooperative Bank has failed to pay back Sh266 million while Kenya Power has not released payment on its Sh312.5 million from September 31, 2006.
The defunct Local Government Loans Authority owes Sh7.59 billion to the government. Lake Victoria Water Services ranks as the second highest defaulter after failing to pay Sh4.1 billion even though it is still in business.
The National Water Conservation and Pipeline Corporation owes Sh2.46 billion while the Rift Valley Water is yet to pay Sh1.4 billion from loan that was due for repayment in 2010 .
Taken over
The Eldoret Municipal Council whose assets and liabilities where taken over by the Uasin Gishu County owes Sh1 billion from a 1993 debt.
The Pyrethrum Board of Kenya (now Pyrethrum Regulatory Authority) has not paid a single cent out of the Sh863.4 million bailout package that it received in 2008.
Other large bad debtors include Kenya Meat Commission (Sh940 million), Coffee Board (Sh560.3 million) and the Agricultural Finance Corporation (Sh505 million).
Kenya Industrial Estates, KPLC Ltd (now Kenya Power), Co-operative Bank and East African Sugar Industries have also defaulted on several loans amounting to Sh323 million, Sh312 million, Sh266 million and Sh172 million respectively.
The list of defaulters also includes Nzoia Sugar which owes Sh158 million and the Water Resources Management which has not paid Sh103 million from September 30, 2008.
The Tourism Finance Corporation (formerly known as KTDC) has Sh48 million debt that should have been repaid in 1991. Mumias Outgrowers has an outstanding Sh3.6 million loan that dates back to 1974.
The Auditor-General’s statement shows that in the last financial year parastatals and public institutions owed up to Sh210 billion in outstanding loans. According to the Mr Ouko by June 30 2015 only Sh13 billion had been repaid by the various institutions.
“The total outstanding loans’ balance of Sh196.8 billion represents an increase of Sh15 billion, approximately 8.6 per cent of total outstanding balance of Sh181.2 reported as at 30 June 2014,” he said in his report.
