Sessional Paper No. 02 of 1987 on Kenya Government Guarantees of Bank Loan Facilities

Abstract

In its endeavour to promote development in Kenya, the Government supported financially a number of promising projects by persuading the local banks to participate in raising the capital for the projects. Such projects like Kenya Furfural Company Limited in Eldoret, Kenya Chemical and Food Corporation in Kisumu, and Kenya Fibre Corporation in Nanyuki, had seemingly very positive feasibility studies . Unfortunately, it transpired that a number of these projects after take-off, started developing financial problems due to various reasons such as marketing, poor management, underutilization of capacity etc., etc. Projects whose capital was raised by way of loans secured on Government...