Nairobi, Jan. 6 -- Equity Bank and Co-operative Bank of Kenya owe the government Sh457 million arising from historical agreements where the State provided funds to the firms for onward lending to businesses, including in the agricultural sector.

Latest Treasury debt disclosures show the two tier-one lenders had the combined amount outstanding as at the end of last financial year in June 2025.

The Treasury disbursed a combined Sh784 million to the two banks for onward lending to targeted groups under government-sponsored credit programmes over many years.

The disclosures show that only Sh327 million had been repaid in the review period.

Co-op Bank owed the State Sh267 million outstanding out of Sh339 million it received for onward lend...