State-owned corporations raised their commercial borrowing that lacks government guarantees by 38.2 per cent, reaching a total of KSh62 billion for the year ending June 2026.

The stock of non-guaranteed debt grew by KSh17.1 billion during the period, adding to the KSh44.9 billion recorded in June 2025.

The National Treasury noted in its latest annual debt-management report that the rise “warrants enhanced monitoring given that such borrowing, although not explicitly guaranteed by the government, may present contingent fiscal risks”.

The same report indicated that five companies account for 81.9 per cent of all unsecured debt, implying that difficulties at a small number of firms could impose large costs on the government.

The National Cereals and Produce Board was the biggest borrower with a KSh13.94 billion fertilizer loan from KCB Bank Kenya, representing 22.5 per cent of the total exposure.

Kenya Electricity Generating Company, 70 per cent state-owned, owed KSh9.77 billion, of which KSh9.32 billion came from Absa Bank and KSh443 million from the French development-finance institution AFD.

Kenya Airports Authority carried KSh9.65 billion of debt sourced from the World Bank and AFD (listed as AFD (MIA)).

Kenya Forest Service had outstanding obligations of KSh9.25 billion to the French Government, the African Development Bank and the African Development Fund.

Kenya Ports Authority’s liability stood at KSh8.18 billion, split into two Stanbic Bank loans of KSh3.82 billion and KSh4.36 billion.

Collectively the five entities held KSh50.8 billion of unsecured loans, while the remaining six corporations covered by the Treasury assessment shared the balance of KSh11.2 billion.

Energy and petroleum firms together accounted for KSh19.59 billion, or 31.6 per cent of the total exposure, including KenGen, Kenya Power Company, Geothermal Development Company and the National Oil Corporation of Kenya.

Roads and transport companies contributed KSh17.83 billion, equivalent to 28.7 per cent, largely through Kenya Airports Authority and Kenya Ports Authority.

The agricultural sector represented KSh15.34 billion, or 24.7 per cent, of the unsecured debt pool.

Public and publicly guaranteed debt was recorded at KSh13.12 trillion at the end of June 2026, amounting to 70.4 per cent of gross domestic product.