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State firms widen risk with Sh17 billion unsecured loans
Report shows that public and publicly guaranteed debt stood at Sh13.12 trillion at the end of June 2026, equivalent to 70.4 percent of GDP — a measure of all economic activities by the government, companies and individuals.
State corporations increased their commercial borrowing outside government guarantees by 38.2 percent to Sh62 billion in the year to June 2026, exposing the Treasury to growing contingent risks if the firms fail to repay their lenders.
The stock of non-guaranteed debt increased by Sh17.1 billion in the period, adding to the stockpile of Sh44.9billion recorded in June 2025.
