CBK retains top spot in Kenya's wealthiest parastatals list

Central Bank of Kenya. [File, Standard]

The Central Bank of Kenya (CBK) remains the country’s richest parastatal, according to the latest consolidated financial report for state corporations, autonomous government agencies and public funds.

The report, covering the period ending June 30, 2024, shows the CBK’s asset value at Sh1.96 trillion, up from Sh1.78 trillion the previous year.

Kenya Airports Authority maintains its second-place position with assets worth Sh1.06 trillion, unchanged from the previous year.

However, Kenya National Highways Authority (KeNHA) has risen to third place, displacing Kenya Railways Corporation (KRC).

KeNHA’s assets increased to Sh807.998 billion, up from Sh768.34 billion in the previous year, while KRC’s assets declined from Sh983.29 billion to Sh788.784 billion.

The report further reveals the total assets of State corporations, autonomous government agencies, and public funds in Kenya increased by eight per cent to Sh9.807 trillion as of June 30, 2024, compared to the previous year. Treasury attributed the increase in value to factors such as the appreciation of property, plant, and equipment, as well as growth in investments and long-term receivables.

“As at 30th June 2024, the SCs, SAGAs and public funds total assets amounted to Sh9.807,051 trillion compared to Sh9,190,217 trillion as of 30th June 2023 representing an increase of Sh616.833 billion (8 per cent),” said Treasury. “The increase is attributed mainly to the movement in the value of property, plant and equipment by Sh218,016 billion, investments by Sh31.191 billion long-term receivables by Sh69.886 billion and investment property by Sh 50.068 billion.”

The report identifies other prominent members of this ‘elite club’ within Kenya’s over 300 parastatals and autonomous agencies.

These include Kenya Electricity Generating Company (Sh491.29 billion), National Social Security Fund (Sh399.159 billion), Kenya Power (Sh351.851 billion), Kenya Ports Authority (Sh350.890 billion) and Kenya Electricity Transmission Company (Sh243.981 billion).

The Kenya Deposit Insurance Fund (Sh224.328 billion), University of Nairobi (Sh218.258 billion), Kenya Urban Roads Authority (Sh170.085 billion) and Higher Education Loans Board (Sh150.017 billion), Public Service Superannuation Fund (Sh144.970 billion), Kenya Pipeline Corporation (Sh6.5 billion), Kenya Airports Authority (Sh4.8 billion) and Geothermal Development Authority (Sh4.77 billion) also feature among the wealthiest parastatals.

The assets of these entities are primarily composed of long-term investments, property, plant, and equipment, as well as short-term assets like cash and accounts receivable.

Some of the major asset holders are Central Bank, Kenya Railways Corporation, Kenya Urban Roads Authority, Kenya Power, Kenya Electricity Generating Company, University of Nairobi, and the National Social Security Fund. The assets held by these entities include government bonds, infrastructure projects, and real estate.

The report’s release coincides with renewed efforts by President William Ruto’s administration to divest from non-performing parastatals that strain the national exchequer.

This push aligns with pressure from the International Monetary Fund (IMF). However, a recent High Court ruling declaring the Privatisation Act unconstitutional due to a lack of public participation presents a legal hurdle to these plans.

Despite this, the government remains committed to its target of selling 35 parastatals, with plans to dispose of the first 11 already unveiled.