Kenya Railways Corporation recorded a loss of KSh24.2 Billion in the period ending June 30th, 2020, compared to KSh 8.5 Billion in the previous financial year.
According to figures contained in the Consolidated National Government Investment Report 2020, presented to parliament by Treasury Cabinet Secretary Ukur Yatani, Kenya Railways owed the Government an outstanding loan amounting to KSh 539.3 Billion out of a total of KSh 928.9 Billion that State corporations owed the Government at the end of the last financial year.
Kenya Railways had the highest stock of outstanding loans to the Government, loans that the state procured for KR to enable it implement the SGR project.
During the period under consideration, the balance sheet size of Kenya Railways grew to KSh 761 Billion due to its investment in phase two A of the Standard Gauge Railway (SGR) project.
KR net assets are estimated at KSh 634 Million.
Commercial State Corporations posted a decline in net profit in the 2019/20 financial year KSh 5 Billion compared to KSh 31.7 Billion the previous year; the huge drop attributed to massive losses by Kenya Railways Corporation.
State Corporations under the Ministry of Transport, Infrastructure, Housing, and Urban Development received the highest allocation of development grants at KSh 167.9 Billion of 57% of total allocation.
This is compared to State Corporations under the National Treasury, which received 14% of total allocations of KSh 42.4 Billion.
In the 2019/20 financial year, Kenya Railways Corporation received KSh 3.5 Billion in development grants and posted KSh 18 Billion in internally generated funds while incurring a net loss of KSh 24.2 Billion.
A schedule from the Consolidated Government Investment Report 2019/20 shows that loss-making Kenya Railways did not pay any dividends to the Government, had no surplus, and did not make any interest payments on GOK loans.
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