By James Wafula in Nairob.
The Co-operative Bank of Kenya is struggling to recover part of Sh287.42 million loans it received from the Treasury.
The bank received the cash for on-lending to government projects, according to the latest disclosures on the country’s debt status.
The bank, Kenya’s fourth-largest by market share, was among six privately-owned lenders which were listed by the Treasury for owing the State nearly Sh1.08 billion in on-lent loans at the end of June 2020.
Others were Equity Bank Kenya, whose outstanding loan stood at Sh493.47 million at the time, and four deposit-taking micro-financiers — Kenya Women Finance Trust (Sh100.56 million), Faulu Kenya (Sh98.15 million), SMEP (Sh49.40 million), and Rafiki (Sh46.40 million).
The latest annual debt report for the period ended June 2021 shows Co-op Bank did not service the loan in the year through June 2021, the only one amongst the six privately-owned financial institutions with on-lent credit from the Treasury.
“The Co-operative Bank of Kenya (Co-op) (is) consistent in loan repayments, therefore reducing arrears. However, Co-op Bank has indicated that various co-operative societies are in a moribund state thereby rendering the inability to repay some of the on-lent loans,” the Treasury says in the annual debt report.
The report does not specify the government-based SACCOs which the Treasury borrowed funds on their behalf through Co-op Bank and which were now struggling to repay▄
