Several parastatals are in the red, surviving solely on taxpayer support.
Auditor General Nancy Gathungu says in a string of reports that the number of state-owned enterprises in financial distress seems to grow by the day.
Most parastatals are run as businesses that generate revenue to keep them afloat and even make a profit.
At least eight state corporations have been declared cash-strapped by the Auditor General in the latest audit. Gathungu fears the number could be higher.
Some of the big names in financial trouble include the Kenya Broadcasting Corporation, South Nyanza Sugar Company (Sony), Rivatex, Kenya Bureau of Standards, National Museums of Kenya, National Oil Corporation of Kenya, Kenya Post Office Savings Bank (Postbank), Postal Corporation of Kenya, Nzoia Sugar, East Africa Portland PLC and power transmission giant Kenya Electricity Transmission Company (Ketraco).
In the audit report for the the 2022–23 financial year, Gathungu casts doubt on the sustainability of KBC, which the report indicates is operating on negative capital.
The public broadcaster’s liabilities stand at Sh94,108,387,000 against assets valued at Sh1,301,992,000. This translates to Sh92,806,395,000 negative working capital.
The auditor has also raised a red flag on the financial health of the Kenya Bureau of Standards after it emerged the corporation has been operating with a negative working capital of Sh930.5 million.
