Report: KBC sinks deeper into debt

NAKURU, KENYA: The national broadcaster sunk into a deeper financial abyss after it reported a Sh5.3Billion loss according to an Auditor General's Report for the 2014-15 financial year.

The report by the Auditor General Edward Ouko reveals Kenya Broadcasting Corporation (KBC) as at end of financial year had accumulated Sh41 Billion loss as the financial situation worsen.

The Report reveals the state broadcaster is operating on a negative working capital with current liabilities running into Sh47 Billion against current assets worth sh1Billion.

KBC according to the Auditor's Report reported sh5.5 Billion loss in 2013-14 financial year and is "technically insolvent" relying on government support and its creditors to stay afloat.

While the government transfers during the period increased from Sh824 Million to Sh1.1 Billion, KBC's staff costs rose from Sh823 Million to Sh946 Million in 2014-15 financial year.

The Audit also found a parcel of land hosting Ngong TX station in Kajiado county according to documents availed for the audit was 33 acres yet evidence suggest the land was 124 acres valued at Sh2.7 Billion.

The Audit also faulted the management for not remitting Sh788 Million statutory deductions during the year which could attract penalties and fines.