Business

Kenya's rich state agencies gained Sh180bn due to weak shilling in 2023

The National Treasury.

By Saleem Abdi | Wednesday, February 7, 2024

Kenya had 526 state agencies by June 2023, which was an increase from 500 agencies the previous year.

State agencies gained more than Sh180 billion on the depreciation of the Kenyan Shilling last year, being gains on foreign currencies they had during the year.

This saw total cash held by the state corporations, semi-autonomous government agencies (SAGAs), public funds and universities increase from Sh763 billion by the end of June 2022, to Sh943.8 billion by the end of June last year.

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The National Treasury in the latest report on cash flows state agencies had by the end of 2022/23 attributes the increase to gains on foreign-denominated currencies.

“The increase of Sh180,758 million is explained by unrealized foreign exchange gains on the foreign currency denominated cash holdings of the state agencies,” Treasury says in the report on consolidated financial statements for state corporations and SAGAs.

Kenya had 526 state agencies by June 2023, which was an increase from 500 agencies the previous year.

Of the more than Sh943 billion held by all the state agencies, however, 79 per cent was held by just 20 agencies, Treasury disclosed.

The 20 include Central Bank which held Sh512 billion, the highest amount held by any single agency and more than half of all the cash held by the 526 agencies. Others are Kenya Rural Roads Authority, Kenya Roads Board, Road maintenance levy fund and the fund account for national government constituencies development fund.

“The top twenty State Corporations have a combined cash and bank balances of sH787,674 million, which accounts to 79 per cent of the total cash and cash equivalents as of June 30, 2023,” Treasury stated.

Kenya Power held Sh18.2 billion, the Communications Authority of Kenya Sh28.8 billion, KENHA Sh17.2 billion, KenGen Sh14.9 billion and Kenya Pipeline Sh11.7 billion.