Auditor General Flags Ksh170B Undisclosed Balances Owed to USA, Japan & Germany
The Auditor General has expressed apprehension regarding an amount of Ksh170 billion that Kenya owes to Germany, Japan, and the United States. This sum was not included in the official statement of obligations guaranteed by the Government of Kenya.
The irregularity was identified in the Auditor General’s assessment of the National Government Ministries, Departments, and Agencies (MDAs) for the Financial Year 2022/2023.
The Office of the Auditor General (OAG) disclosed that the summary of public debt for the fiscal year ending on June 30, 2023, indicated that guaranteed debts amounting to Ksh170 billion were not included in the statement of obligations.
The debt was distributed among three entities, namely Kenya Airways, Kenya Ports Authority, and Kenya Electricity Generating Company PLC.
Kenya Airways has secured a loan from the Exim Bank of the USA, backed by a guaranteed debt of Ksh88 billion provided by the Kenyan Government.
Likewise, the Kenyan government ensured the repayment of a Ksh79 billion loan provided by the Japanese government.
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The most recent organization with a undisclosed financial status is the Kenya Electricity Generating Company PLC, which received a loan of Ksh2 billion from the German government.
“In the circumstances, the completeness, accuracy and the status of the outstanding obligations guaranteed by the Government of Kenya as of June 30, 2023, could not be ascertained,” the OAG report indicated.
Furthermore, the Office of the Auditor General (OAG) identified an unsecured balance of Ksh152 million, backed by the Government of Kenya, representing both principal and interest owed by the Cereals and Sugar Finance Corporation.
“The balance has not been supported by any verifiable records or documents and this constitutes a limitation of scope,” it was revealed.
In its defense, the government informed the Office of the Auditor General (OAG) that the State Corporation’s operations would cease upon the completion of the winding-up procedure.
“It is not clear how the guaranteed debt will be cleared without supporting documentation on the same,” the Auditor General wondered.
Auditor General Flags Ksh170B Undisclosed Balances Owed to USA, Japan & Germany
