Treasury eyes Sh6.1b from State debtors
Published Sun, May 6th 2018 at 00:00, Updated May 5th 2018 at 20:39 GMT +3
The National Treasury expects Sh6.1 billion from State corporations and Government agencies in the next financial year of the Sh811.4 billion outstanding loans.
According to the budget summary for the fiscal year 2018/2019, National Treasury has budgeted for loan principal receipts of Sh3.9 billion and interest repayment of Sh2.2 billion.
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It expects repayments from 26 corporations, agencies and other organisations of the 71 it has lent money to.
Treasury data shows total outstanding loans to the organisations stood at Sh793.3 billion as at June 30, 2017.
“The national government loan portfolio is an accumulation of loans given by the National Government over years,” said Treasury.
From the amount, loans worth Sh704.4 billion are performing while Sh89.2 billion are non-performing.
Various firms have been suffering losses, making it hard for Government to recover its loans.
Listed firms such as Uchumi Supermarket, Kenya Airways and Mumias Sugar have posted losses for several years despite loans to help them stay afloat.
In the 2017/2018 budget, government disbursement increased from Sh588 billion to Sh811.3 billion, while Sh17.6 billion was repaid.
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New loans went to KenGen, Kenya Power, Lake Basin Development Authority, IDB Capital, Kenya Railways Corporation, Uchumi Supermarket, Mumias Sugar and Athi Water Services Board. These pushed loans up by Sh223.8 billion.
Kenya Railways Corporation has the largest outstanding loan amount of Sh473.2 billion followed by KenGen (Sh129.3 billion), Kenya Power (Sh55.3 billion), Athi Water Services Board (Sh32.99 billion) and Kenya Airways with Sh24.2 billion.
The Government expects the biggest principal receipts to come from Kenya Power – Sh2.03 billion – as well as Sh960.9 million as interest.
From KenGen, Treasury estimates principal receipts of Sh885.6 million. In addition, it is estimating to get Sh737.96 million as interest.