Public broadcaster Kenya Broadcasting Corporation (KBC) is currently unable to meet its financial obligations owing to its huge debts and outstanding loans.
This was revealed by ICT Cabinet Secretary Joe Mucheru, who said KBC’s debts total Sh4.2 billion and it is also unable to repay a Sh79.9 billion Japanese loan.
“The national broadcaster is technically insolvent. The debts are both recurrent and development,” he told Senate Standing Committee on ICT Wednesday.
A business entity is considered technically insolvent when its liabilities are bigger than its assets.
The CS told senators the ICT ministry was seeking ways to address hurdles facing KBC due to the critical role it plays in national development.
“The financial problems mean KBC is unable to undertake reforms recommended in the National ICT Policy,” said Mucheru.
He revealed how the national broadcaster’s employee salaries often delay resulting in low morale among the staff.
He added, “The financial woes mean that KBC is unable to maintain equipment, implement development projects and achieve its obligations.”
Mucheru, therefore, intimated his ministry was in talks with Treasury in a bid to bail out the struggling broadcaster, which is also grappling with ageing staff.
He also revealed that KBC needed Sh11.2 billion within the next five years to pull it out of its financial quagmire.
“KBC requires an additional funding of Sh1.8 billion annually. The draft memo is currently with the National Treasury awaiting their input,” Mucheru added.