State flags Sh4.8bn loans varsities hold

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Jomo Kenyatta University of Agriculture and Technology entrance. JKUAT carries the bulk of non-guaranteed bank loans. FILE PHOTO | PHOEBE OKALL | NMG

The Treasury has warned that the bulk of commercial loans debt-laden public universities hold are costly overdrafts that could pose a financial burden on taxpayers if they are not serviced.

The Treasury says disclosures made by eight universities for the period ended June 2023 show that the outstanding debts to local commercial banks amounted to Sh4.88 billion.

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