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State firms default on Sh266bn National Treasury-backed loans
Treasury in the annual public debt management report notes that out of the Sh1.26 trillion on-lent loans issued to the 54 institutions, only Sh64.6 billion has been repaid by some of them.
Public institutions have defaulted on loans worth Sh266.5 billion, meaning Treasury will step in to settle their obligations. Taxpayers are at risk of ultimately repaying a total of Sh946 billion loans that have been issued to 28 public institutions.
The agencies’ inability to repay the loans passes the burden to the National Treasury, which services them as part of Kenya’s public debt.
