Commercial banks are being advised to re-evaluate billions of shillings in loans extended to State corporations due to the new Government Owned Enterprises (GOE) Act, 2025. Enacted in December 2025, this law transforms many public agencies into public limited liability companies, potentially removing guaranteed government backing for their debts. Analysts at Bowmans recommend that lenders treat these entities as standalone borrowers based on their own balance sheets, as existing guarantees tied to statutory corporations may not automatically transfer to the successor companies. This warning is significant as 14 state-owned enterprises had Sh44.87 billion in non-guaranteed debt by June 2025, with major entities like Kenya Power and KenGen holding substantial obligations to commercial lenders, posing potential fiscal risks to taxpayers.