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Browsing: fiscal deficits
- Kenya’s debt distress has escalated, with loan repayments falling due amid a depreciating shilling against the dollar.
- Other impediments include Kenya’s vulnerability to climate shocks such as drought and floods, which may derail growth over the long term.
- On the expenditure side, fiscal consolidation in the past two years has led to a real per capita spending decline.
Experts have warned that Kenya risks missing its economic growth targets in the medium term as it grapples with high debt distress and a deteriorating macroeconomic operating environment.
The country finds itself in a tight spot following years of successive borrowing, coupled with the inability of the private sector to create sufficient jobs for millions of young people entering the job market annually.
The latest finding by an economic think tank, the Institute of Public Finance (IPF), shows that since 2014, persistent high fiscal deficits have resulted in a swift escalation of …
