Nairobi, July 19 -- Bank lending to parastatals has dropped to levels last seen four years ago on mounting defaults as the financial institutions move to cushion themselves from further losses in the State-owned enterprises (SOEs).
Latest Central Bank of Kenya (CBK) data shows that banks' net loan book to parastatals has fallen for three consecutive months to close April at Sh77.2 billion.
The last time the sector's loan book to parastatals was below the latest level was in March 2017 when it stood at Sh76.9 billion.
The drop in parastatals' loan book comes on the back of a CBK report released in December last year disclosing that banks risked losing up Sh100 billion loaned to State entities.
The report cited a slowdown in economic acti...