My name is David Onyango Obiero, registration number D61/86067/2016, I joined University of Nairobi in 2016 to study MBA in business administration finance option, my thesis was the effect of public debt on the economic growth in Kenya.
Abstract
The outcome of public debate on economic growth is a debatable issue amid scholars since the onset of debt crisis in 1980s. Public debt is one of the remaining macros economic indicators, which forms countries image in international markets. It is one of the inward foreign direct investment flow determinants. A prudent public debt management helps economic growth and stability through immobilizing resources with low borrowing cost and limiting financial risk exposure. Kenya being a developing country has depended profoundly on public debts, grants and foreign aid over the years. A high level of debt in Kenya poses a great challenge for the economy because large portion of revenues is devoted to servicing the debt instead of being put into domestic investment, thus reducing the prospects of economic growth .As a result, an increase in real interest rate, inflation, unemployment high exchange rate and t debt service and payment difficulties due to the considerable increase in the level of public debt in Kenya has been noted. Besides, funds are being diverted to repaying the debt at the expense of economic development and domestic consumption.
Research Supervisors
MR JOSEPH BARASA