Kenyan state firms' loans without government guarantee rise 38.2% to KSh 62 billion

Debt that Kenyan state corporations owe without a government guarantee rose 38.2% to KSh 62 billion in the year to June 2026, according to the National Treasury's Annual Public Debt Management Report for 2025/2026. Business Daily reported the figures on 8 October 2026.

Eleven state corporations reported such debt at 30 June 2026, up KSh 17.1 billion from KSh 44.9 billion a year earlier.

The Treasury said the increase warrants enhanced monitoring because such borrowing, although not explicitly guaranteed by the government, may create fiscal risks if the corporations struggle to service it.

Non-guaranteed loans are loans that state corporations take on their own, without a government guarantee behind them.

Five corporations held 81.9% of the total, and together they owed KSh 50.8 billion.

The other six corporations owed KSh 11.2 billion between them.

The National Cereals and Produce Board (NCPB) was the largest borrower, with a KSh 13.94 billion fertiliser loan from KCB Bank Kenya, equal to 22.5% of the total at the end of June 2026.

Kenya Electricity Generating Company (KenGen), which Business Daily said is 70% state-owned, owed KSh 9.77 billion, of which KSh 9.32 billion was borrowed from Absa Bank.

Kenya Airports Authority owed KSh 9.65 billion and Kenya Forest Service KSh 9.25 billion.

Kenya Ports Authority owed KSh 8.18 billion on two loans from Stanbic Bank, of KSh 3.82 billion and KSh 4.36 billion.

By sector, energy and petroleum companies accounted for KSh 19.59 billion, or 31.6% of the total.

Roads and transport entities owed KSh 17.83 billion, or 28.7%, and agriculture KSh 15.34 billion, or 24.7%.