[Courtesy]The government might use an additional Sh65 billion to bail out cash-strapped parastatals in the next financial year, the International Monetary Fund (IMF) has revealed. Under the 38-month programme, the government is expected to restructure some of the big SOEs, in a bid to make them efficient as a cash-strapped Treasury looks to reduce its fiscal risks. The evaluation covers Kenya Airways, Kenya Airports Authority, Kenya Railways, Kenya Power, KenGen and Kenya Ports Authority. The expected restructuring of the parastatals is reminiscent of the 1990-style structural adjustment programmes that saw thousands of civil servants retrenched. In December last year, Treasury Cabinet Secretary Ukur Yatani said the State plans to merge or dissolve hundreds of State corporations.

Source: Standard Digital June 29, 2021 04:50 UTC