Nairobi, Oct. 13 -- Taxpayers may in future potentially step in and bail out nine State-owned firms, including Kenya Power, from commercial loans amounting to more than Sh104.84 billion, the Treasury has disclosed.
The loans, which the firms took out after seeking approval from the Treasury, pose potential financial burden on the taxpayer as the proceeds were invested in priority projects.
The credit was advanced by commercial lenders based on the "sound financial position" of the State corporations, which may struggle to honor repayments in future.
"Such SOEs (state-owned enterprises) borrow to finance strategic and high priority projects in the national development agenda," the Treasury says in the annual debt report.
"The non-guarant...