Lending by commercial banks to parastatals has dropped to its lowest level in nearly a decade and a half, even as credit to the national government surges, highlighting a shift in how banks are allocating funds within the public sector.
Data by the Central Bank of Kenya (CBK) shows net domestic credit to parastatals fell to Sh35.8 billion in December 2025, a steep 45.3 percent decline from Sh65.4 billion a year earlier.
