Tracking the billions of taxpayers’ money spent on cash-strapped corporations

President Uhuru Kenyatta and his Deputy William Ruto hands over 1 Billion Shillings to Mumias Sugar Company Chairman Dan Ameyo (Fourth left) as the Kakamega County Governor Wycliffe Oparanya (Third left) and Kakamega County Senator Dr. Boni Khalwale (Center) looks on. (Photo: Benjamin Sakwa/Standard)

Over the years, the Government has bailed out companies and a handful of parastatals in ambitious attempts to prevent them from going under. No beneficiary has ever repaid the loan, and contrary to business logic, none of the entities has announced they intend to return the money.

As at June 30, 2014, State-owned enterprises (SOEs) held a total of Sh14.6 billion in inactive loans, according to the 2015-16 Budget summary. The fact that the State is the guarantor means that taxpayers’ money will be used to pay them off. This money could have been used for development, say in expansion of roads, irrigation to boost food security or construction of health facilities.