State Firms Burden Public With Debts.

Byline: Jevans Nyabiage

Taxpayers continue to shoulder a heavy burden from defaulted loans borrowed by parastatals for government guaranteed advances as public debt swells past the trillion shilling mark.

The Kenya Debt Relief Network in a new study reveals that non performing external loans appear to have been largely generated by parastatals, leaving the government with a total of Sh18 billion of unpaid amount from the parastatals.

Foreign loans

Due to financial mismanagement and political interference, State corporations that had taken foreign loans on government guarantee, were unable to reimburse the government debts.

"The unpaid …