Taxpayers face Sh198 billion penalties for agencies’ unpaid loans

TAXPAYERS could be forced to shoulder close to Sh200 billion in penalties for unpaid loans lent to parastatals, an explosive audit has revealed.

The report seen by the Star shows many state-owned enterprises have failed to service their debts, hence the costly penalties that stand to strain public finances.

A total of Sh407.2 billion in loans to state-owned enterprises was yet to be repaid to various lenders as of June 30, 2024, despite their maturity – some past the repayment dates.