Parastatals’ bank loans hit a 3-year high of Sh14.7bn

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Kenya has started talks with the International Monetary Fund and other development financial institutions for a new loan. PHOTO | SHUTTERSTOCK

Commercial banks advanced a record Sh14.7 billion to State corporations in July as lending to State firms returned to levels last seen three years ago.

Most parastatals are choking in debt with only a few being financially viable, which forced banks to gradually reduce their lending to State corporations by nearly a third in recent years from a high of Sh110.8 billion in January 2018 over default jitters.

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