Co-op Bank Listed Among Five institutions Owing Government Sh1 Billion In Loans

Co-op bank

Co-op Bank.

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Co-op bank, the country’s largest bank by assets, has been named among five institutions owing the government Sh1 billion in loans.

In a report by treasury to parliamentarians, Co-operative Bank is yet to clear loans amounting to Sh287.42 million out of Sh417.86 million it was advanced.

Equity Bank Kenya on the other hand had Sh493.47 million outstanding out of the Sh654.3 million loans it had received

Further, the Treasury has listed the two top-tier lenders among 56 firms, mostly parastatals, which held Sh867 billion in outstanding loans from the national government at the end of June 2020.

The two top-tier lenders, together with three micro-financiers, owed the government nearly Sh1.03 billion, Treasury says without disclosing the time or purpose for which it lent the cash.

Kenya Women Finance Trust topped the three deposit-taking micro-financiers which owed taxpayers money with an outstanding debt of Sh100.56 million out of Sh241.33 million it had taken out.

Faulu Kenya was yet to clear Sh98.15 million out of Sh241.33 million borrowed, while Rafiki Micro-Finance had loan arrears amounting to nearly Sh46.4 million out Sh111.35 million it took.

The five lenders are listed amongst parastatals and other state-controlled organisations which had paid a measly Sh40.05 billion, or 4.42 percent, of the Sh907.06 billion they borrowed from the government.

The bulk of the loans are held by state-controlled firms partly as a result of mega government-sponsored projects they have undertaken in recent years.

Treasury had disclosed in an earlier report that more than half of the country’s 247 parastatals registered either a deficit or a loss in the last financial year that ended in June 2020.

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