Kenya industrial Estate Ltd headquarters in Nairobi. [ photo / Facebook.]
The Kenya industrial Estate (KIE) failed to recover loans worth Sh 1,370,621,000 advanced to enterprises signifying its struggle to break-even in its operations according to Auditor general Edward Auko.
In a qualified audit opinion report tabled before the Parliament last week, Auko noted that KIE disbursed loans amounting to Sh 181,331,500 in the year to June 30, 2016 against Sh 270 million set aside in the vide board paper of January 2016.
The report further poke holes in the companies performance as it only recovered Sh 16 million out of the outstanding debt of Sh 1.37 billion indicating the poor performance of the outstanding loans.
“This translates to a paltry approximately 1.2 per cent of the opening loans balance implying that the colossal amount of outstanding loans are not performing as expected,” reads part of the report tabled by Majority leader Aden Duale.
The report comes just days after the government announced plans to merge Six financial organisations into one body in an effort to reduce the overlapping of roles witnessed during their current parallel running and improve efficiency.
KIE which is to be part of the merger will set to join the likes of Industrial Development Bank of Kenya,Youth Enterprise Development Fund, Uwezo Fund, Women Enterprise Development Fund and Development Bank of Kenya to all form a mega development bank.