National Treasury CS Ukur Yatani speaking during the 2020/21 - 2022/2023 medium-term expenditure framework budget hearing at the KICC in Nairobi on January 15, 2020. PHOTO | FILE | NATION MEDIA GROUP
The BPS notes that in the 2017/2018 financial year, the government paid a total of Sh1.3 billion on behalf of State corporations that were in financial distress.
These debts comprised Sh301 million paid on behalf of Tana Athi River Development Authority, Sh379 million on behalf of East African Portland Cement and Sh739 million on behalf of Kenya Broadcasting Corporation.
The risk of taxpayers shouldering big loans borrowed by parastatals is worrying the National Treasury after it was forced to foot Sh1.3 billion on behalf of three State corporations that were in distress in the last financial year.
The National Treasury has revealed in the 2020 Budget Policy Statement (BPS), that the outstanding government guaranteed debt grew to Sh159.4 billion by June 30, 2019 from Sh138.8 billion recorded in the previous year despite not having issued any new guarantees.
