Impact of External Debt on African States Development: a Case Study of Kenya (2000-2016)

Abstract

This is a study of the impact of external debt on African state’s development with an emphasis on Kenya for the period between 2000 to 2016.In assessing the impact the study outlines two objectives. First, is to investigate the impact of debt on Kenyan social – economic and political development. Second, to assess Kenya’s level of external borrowing. In achieving these objectives the study has described the impact of external debt in Africa drawing examples from Democratic Republic of Congo, Libya, Zimbabwe and Nigeria. The study further finds that external debt has a positive impact on development of African States only up to a favorable debt level beyond which the impact is negative. The study also find out that between the period 2000 to 2016 Kenya borrowed with the favorable external borrowing limits.