Government to offer financial support to key parastatals

National Treasury CS UK Yattani [Photo: The Star]

The government has said it will spend Kshs.36 billion to offer financial support to key parastatals which have sunk into losses as a result of the Covid-19 pandemic.

National Treasury CS UK Yattani said companies including Kenya Airways, Kenya Power, and several other companies and institutions are in need for urgent support following the drop in their revenues .

All such extraordinary support is being based on careful evaluation of need and accompanied by steps to ensure that the entities are put on a sound footing,” said the National Treasury in a statement.

The government also revealed its agreements reached upon with the International Monetary Fund (IMF) as conditions for offering Kenya the latest Kshs.255 billion loan, that will be used in cushioning the country’s economy amid the pandemic.

The agreements indicate Kenya’s commitment to audit nine key parastatals and reform them, according to IMF guidelines.

The parastatals include;  Kenya Airways (KQ), Kenya Airports Authority, Kenya Railways Corporation, Kenya Power and Lighting PLC, Kenya Electricity Generating Company PLC, Kenya Ports Authority, among three top public universities.

For instance, the government plans to hire an independent consultant to audit the KQ airline and find the most affordable means of restructuring it.

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