Kenya Railways in the red
28 May 2013, 14:10
Nairobi - Kenya Railways Corporation (KRC) is insolvent to the tune of KES 50 billion, making it yet another State-owned enterprise that has gone bust, Business Daily report.
In an audit report tabled in Parliament last week, Auditor- General Edward Ouko says the corporation’s liabilities stood at KES 59.44 billion against KES 9.33 billion in total assets, leaving it with a negative working capital of KES 50.11 billion for the year ended June 2011.
Kenya Railways management has attributed the massive negative working capital to a heavy loan and interest charges burden of KES 41.13 billion that it continued to shoulder even as its revenue sources have dwindled over the years.
- For more visit Business Daily
in the conversation on our Facebook page. Also get the latest news by following
us on Twitter.