Development Bank of Kenya declared broke

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Auditor General Edward Ouko says that the Development Bank of Kenya is broke.

The claim comes after the Development bank posted a net current liability of Sh6.9 billion and registered increased profits.

Mr. Ouko argues that Development Bank is broke having compared the lender’s current assets and current liabilities.

Mr. Ouko did not however reveal the exact figures in the report that he tabled in parliament.

“The bank experienced decrease in customer savings to stand at Sh5.7 billion in 2018 from Sh6.2 billion in the year 2017,” said Ouko in a report for year to June 2018.

Mr. Ouko adds that “During the year, the group reported an increase in profitability of Sh137.5 million up from Sh27.6 million in the year 2017.”

According to Mr. Ouko, Development Bank was also advanced Sh4.4 billion by the Central Bank of Kenya in order to effectively continue its operations.

The advance is guaranteed on Development Bank’s investments in government securities maturing after one year.

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