The National Treasury disclosed the loans amounted to KSh 104.84 billion
The exchequer said the billions were invested in priority projects but may have to be repaid by taxpayers given the poor financial state of the parastatals
As of June 2020, KPLC had debts amounting to KSh 53.84 billion
At least nine state-owned firms are struggling with huge debts amid the COVID-19 pandemic that slowed the country’s economy. Students outside the Kenyatta University gate. Photo: KU. Source: UGC The National Treasury disclosed the loans amounted to KSh 104.84 billion.
The exchequer said the billions were invested in priority projects but may have to be repaid by taxpayers given the poor financial state of the parastatals. "The non-guaranteed loans pose a contingent liability risk and potential fiscal commitment to the national government," it said in an annual debt report cited by Business Daily. List of state agencies with huge debts
1. Kenya Power
Electricity distributor Kenya Power and Lighting Company (KPLC) tops the list of state-owned companies that are struggling with huge debts.
As of June 2020, KPLC had debts amounting to KSh 53.84 billion.
From the amount, it owes StanChart KSh 27.72 billion, NCBA KSh 6.75 billion, Equity Bank KSh 4.06 billion and Rand Merchant Bank of South Africa (KSh 1.26 billion).
In September, KPLC resolved to hire four debt collectors that will deal with stubborn defaulters.
As of August 2020, defaulters owed the company KSh 5 billion. However, the figure is expected to have risen due to financial constraints occasioned by COVID-19. 2. Kenya Pipeline The state corporation responsible for transporting, storing, and delivering petroleum products has a KSh 19 billion syndicated loan from five banks.These are Stanbic Bank, NCBA, StanChart, Co-operative Bank, and Rand Merchant Bank of South Africa. 3. KenGen KenGen is the largest electricity producer in Kenya, supplying KPLC with 72% of the power.The firm borrowed a total of KSh 13.62 billion from different financial institutions.It owes NCBA KSh 8.36 billion, Co-op Bank (K Sh2.33 billion), HBSC of London(KSh 1.44 billion), and France Development Bank (KSh 801 million).The funds were used for wellhead, drilling of 89 wells and purchase of rigs, respectively. 4. Kenya Airports Authority The body tasked with managing all airports in Kenya was, as of June 2020, stuck with a KSh 11.82 billion debt.The loan was acquired from France Development Bank. 5. Jomo Kenyatta University of Agriculture and Technology (JKUAT) The public university acquired […]