Data from the National Treasury shows that the bulk of State corporations continue to default on loans advanced to them, with only a handful servicing the same. Power, energy and water corporations lead State agencies with huge unpaid loans, with the national carrier following closely in the list of debtors. KenGen, which leads the pack, is currently servicing a Sh115 billion loan followed by Kenya Power, which has a loan of Sh75 billion as of last year June. KenGen had a loan of Sh138 billion while KP had taken a Sh86 billion loan and by June last year they had paid Sh23 and Sh10 billion, respectively. According to a Treasury report, more than half of the country’s 247 parastatals registered either a deficit or a loss in the 2020 financial year.

Source: Standard Digital May 05, 2021 03:00 UTC