President William Ruto at State House, Nairobi on October 21, 2023.
About 80 percent of Sh9.5 trillion assets held by more than 500 state corporations and other government agencies are in the hands of some 17 entities, a report has revealed.
The report by the Treasury shows that the 17 parastatals and semi-autonomous government agencies (Sagas) hold Sh7.6 trillion assets, leaving close to 500 entities holding the remaining Sh1.9 trillion assets.
Treasury’s report on consolidated financial statements for state corporations and Sagas for the financial year 2022/23 noted that two entities – the Central Bank of Kenya- CBK (Sh1.78 trillion) and Kenya Airports Authority- KAA (Sh1.06 trillion) – had assets surpassing the Sh1 trillion mark by end of June last year.
The two were followed by Kenya Railways Corporation (KRC) which had assets valued at Sh783.29 billion, Kenya National Highways Authority (Kenha) with Sh768.34 billion assets, and Kenya Electricity Generating Company (Kengen) with Sh514.37 closing the list of five public entities with assets valued over half a trillion shillings.
“The high-valued assets held by these entities include, held to maturity investments for CBK, plant, property, and equipment for KRC, Kenya Urban Road Authority (Kura), Kenya Power and Lighting Company Limited (KPLC), Kengen, Nairobi University and Kenya Rural Roads Authority (Kerra), and Investments in bills and bonds for National Social Security Fund (NSSF),” Treasury stated.
The CBK alone holds 18 percent of the assets, while KAA holds 11.1 percent. Together, the two hold 30 percent of the assets.
The details by the Treasury show that four entities- Kura, KPLC, Kenya Ports Authority (KPA), and NSSF- hold assets valued between Sh314 billion and Sh407 billion.
Kenya Electricity Transmission Company Limited (Sh236.9 billion), Kenya Roads Board (Sh225.7 billion), University of Nairobi (Sh212.4 billion), Kenya Pipeline Company (Sh129.45 billion), Rural Electrification and Renewable Energy Corporation (Sh128.6 billion), Athi Water Works Development Agency (Sh118.9 billion), Higher Education Loans Board (Sh115.55 billion), and Geothermal Development Company Limited (Sh108.46 billion), close the list of top 17 public entities holding most assets.
“Property, plant, and equipment accounted for 60 percent of all assets within the SCS, SAGAS, and Public Funds in the National Government. Investments accounted for 2 percent, cash and cash equivalents and receivables accounted for 7 percent each while inventories, long term receivables, and intangible assets accounted for 10 percent in total,” Treasury observed.
It noted that much of the assets are under property, plant, and equipment are lands, buildings, and infrastructure assets.
Treasury consolidated data from 225 Sagas, 81 public funds, 62 universities, and 158 Technical and vocational training institutes (TVETs). Some 16 entities did not submit data and were thus not considered in the report.
The government had 526 entities classified under state corporations and Sagas in 2022/23, up from 500 entities during the previous year. Their assets increased by Sh1.74 billion (18 percent), from Sh7.7 billion in 2021/22.
“There was an increase in investment property by 36 percent indicating the increased completion of prior periods works in progress and an increase of 19 percent under the PPE (Property Plant and Equipment) indicating government expenditure on capital assets. Cash and cash equivalents increased by 19 percent or Sh128.1 billion as compared to the previous year,” Treasury reported.
