In its continued effort to overhaul the underperforming agencies, the National Treasury has identified 14 out of 18 significant State parastatals as financially weak.
The 14 parastatals have been divided into three groups based on their earnings potential.
The Kenya Broadcasting Corporation (KBC), the East African Portland Cement Company (EAPCC), the Postal Corporation of Kenya (PCK), and the Kenya Post Office Savings Bank (KPOSB) have all been classified as loss-making due to major market share losses.
Kenya Power and Kenya Railways, have been characterized as unprofitable due to huge indebtedness resulting from on-loaned loans, large liabilities, and severe liquidity problems.
Other parastatals in the social service sector have been found to run at a loss while having strong social mandates to supply essential services.
Kenya National Hospital (KNH), Kenya National Examinations Council (KNEC), Athi Water Works Development Agency (AWWDA), and Kenya Wildlife Service (KWS) are among the eight (KWS).
The 18 are among 260 State Corporations (SCs) that include the Kenya Ports Authority (KPA), Kenya Pipeline Company (KPC), Kenya Airports Authority (KAA), and KenGen, which are all profitable parastatals.
A financial assessment of the finds a Ksh.382 billion cash imbalance for all parastatals over the next five years.
