Category: parastatals
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Banks cut loans to parastatals by 15pc, defaults up
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Commercial banks reduced their lending to semi-governmental institutions by 14.7% in July compared to the same period last year, the largest decline in four years. This comes as state-owned companies struggle to service debts owed to their largest lender, the government. Overall, commercial banks, microfinance banks and savings and credit…
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Non-tax revenue from parastatals post biggest increase on mop-up
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New data from the National Treasury showed that the money the government generates from non-tax sources such as service charges, as well as absorbing surplus funds from parastatals, more than quadrupled in the first two months of the year. The Treasury said in its monthly disclosures that non-tax revenue for…
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Rich parastatals face cash squeeze in Treasury raid
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Cash-rich parastatals are bracing for tough times after the state moved to raid their coffers in a move that will also see them hand over their surplus cash to the Treasury rather than investing in government paper. President William Ruto’s administration is eyeing at least Sh708.43 billion held by parastatals…
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How commercial parastatals will change in planned law
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Treasury Minister Njuguna Ndongo has put forward far-reaching legal changes that seek to provide a new framework for establishing, monitoring and measuring the performance of government-owned companies. The Government-Owned Enterprises Bill 2024 seeks to reform governance structures and strengthen the accountability of state-owned commercial enterprises where they control more than…
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Banks face fresh hit from parastatals’ idle cash ban
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Parastatals in Kenya have been banned from holding idle funds in bank accounts under a new public finance reform plan that seeks to promote transparency and efficiency in the use of public resources. Treasury Minister Njuguna Ndung’u revealed that the Treasury has officially adopted a hybrid single-account model whereby ministries…