As the government celebrates the repayment of Sh11.76 billion in State-guaranteed loans by the Kenya Electricity Generating Company (KenGen) and the Kenya Ports Authority (KPA), a far more troubling reality remains hidden beneath the headlines.

Kenyan taxpayers are still exposed to more than Sh61 billion in debt owed by the two State corporations, while Kenya Airways continues to struggle with its own guaranteed obligations despite years of bailouts and public support.

According to Treasury records, KPA still carries approximately Sh39.39 billion in State-guaranteed debt, while KenGen remains burdened with about Sh22.39 billion. Together, the two institutions account for more than Sh61 billion in liabilities that remain backed by the Government of Kenya.

In simple terms, if these corporations fail to meet their obligations, it is ordinary Kenyans who ultimately stand to pay the price.

The government has presented the reduction in guaranteed loans as a major achievement. Yet critics argue that the celebration masks a much bigger question: why are some of Kenya's most strategic State corporations still dependent on sovereign guarantees decades after they were expected to operate as commercially viable entities?

A State guarantee is effectively an insurance policy provided by taxpayers. It allows government agencies and corporations to borrow money with the assurance that the National Treasury will step in if repayments become difficult.

While KenGen and KPA have reduced portions of their debt, the underlying taxpayer exposure remains enormous.

The bigger issue concerns the projects that justified the borrowing.

Over the years, KenGen borrowed billions of shillings to finance geothermal plants, power generation infrastructure and expansion projects intended to increase electricity production and drive economic growth.

KPA similarly borrowed heavily to fund port modernization programmes, cargo handling facilities and major infrastructure developments at the Port of Mombasa and related facilities

The official narrative has always been that these projects would generate substantial economic returns, increase efficiency and strengthen the financial position of the corporations.

But years later, the question remains unanswered: Did these projects generate enough economic value to justify the borrowing?

If they did, why do KenGen and KPA still require sovereign guarantees worth tens of billions of shillings?

Why are lenders still relying on taxpayers as the ultimate safety net?

The situation becomes even more alarming when Kenya Airways enters the picture.

Unlike KenGen and KPA, the national carrier reportedly failed to reduce its State-guaranteed debt position and remains heavily reliant on government support. Over the years, billions of shillings in taxpayer funds have been injected into the airline through bailouts, guarantees and restructuring efforts.

Yet Kenya Airways continues to face financial challenges that have kept it dependent on public backing.

Taken together, the figures reveal a troubling reality. While government officials are celebrating a Sh11.76 billion reduction in guaranteed debt, taxpayers remain exposed to more than Sh61 billion through KenGen and KPA alone, with Kenya Airways continuing to rely on State support.

This raises difficult but necessary questions.

Have the billions borrowed by these corporations delivered the promised economic returns?

Have Kenyans received value for money from the projects financed through these loans?

Why do major State corporations continue to rely on sovereign guarantees years after commercialization and corporate reforms were introduced?

And most importantly, how much longer will taxpayers remain the guarantors of last resort for institutions that were supposed to stand on their own feet?

Until those questions are answered, the real story is not the Sh11.76 billion that has been repaid.

The real story is the more than Sh61 billion that Kenyan taxpayers are still being asked to guarantee.