Development Bank of Kenya is broke after posting a net current liability of Sh6.9 billion, Auditor General Edward Ouko has said, even as it registered an increase in profitability.
Mr Ouko says he arrived at the conclusion after comparing the lender’s current assets and current liabilities, but his report tabled in Parliament did not reveal the specific figures.
“The bank experienced decrease in customer savings to stand at Sh5.7 billion in 2018 from Sh6.2 billion in the year 2017,” said Ouko in a report for year to June 2018.
“During the year, the group reported an increase in profitability of Sh137.5 million up from Sh27.6 million in the year 2017.”
His report also revealed that the Central Bank has advanced the lender Sh4.4 billion to meet its obligations.
The advance is guaranteed on Development Bank’s investments in government securities maturing after one year.
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