Treasury on the spot over parastatals defaulting on government lent loans

Auditor-General questions how the Government Investment and Public Enterprises Management department that oversights corporations has been playing its oversight role. [Jonah Onyango, Standard]

Government’s ability to collect over Sh28 billion in loans advanced to various parastatals appears in doubt, with some loans outstanding for years. This is even as the government makes little effort in loan recovery with concerns that some debts could be written off.

The Auditor-General says while the debts have been outstanding for years, the National Treasury has not made serious attempts to recover the money.