Struggling State companies pose Sh1.3tr exposure to taxpayers

Treasury estimates that 18 of the total SOEs in the country may require Sh382 billion in the next five years to cover their liquidity shortfalls. [File, Standard]

National Treasury faces a Sh1.3 trillion fiscal risk from struggling State firms, which may require support for critical activities such as repaying loans, paying suppliers and defending court cases.

The exposure, which nears the Sh1.669 trillion tax collections in the last financial year, is listed as one that could force the State to divert resources to rescue such firms should such risks crystallise.