State Corporations in financial distress

A report by the Auditor General exposed the alarming financial state of dozens of state corporations, especially those in the energy, agriculture, and industrial sectors.

The review reveals entities that are technically bankrupt and surviving solely on government bailouts and taxpayer-funded debt, casting severe doubt on their ability to continue operations.

Auditor General Nancy Gathungu says her review for the year ending June 30, 2024, established a worrying pattern of insolvency and massive accumulated losses.

The auditor raised concerns about the failure by management to disclose the grave financial uncertainties facing the parastatals. The energy sector is particularly afflicted.