An Evaluation of the Structure and Servicing of Kenya’s Public Debt
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Date
2002-08Author
Ogola, Florianna A
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The aim of this study was to determine the structure and servicing of Kenya's
public debt; whether an association existed between internal and external
government debt; and the ability of Kenya Government to service its debt.
The study used secondary data from documents of the Kenya Government and the
Central Bank of Kenya and the data collected was analyzed using trend series and
financial ratios adapted from debt and debt servicing indicators used by the World
Bank and the Maastricht Treaty of the European Union. The major conclusions
reached are set out below.
(a) More than 50 percent of Kenya's public debt was on concesional terms
and the fact that a larger proportion of debt servicing went to service domestic
public debt is an indication that public debt in Kenya had been poorly managed.
(b) Levels of external public debt were positively associated with levels of
e
domestic public debt servicing.
(c) Over the last twenty years of the study period, Kenya was severely
indebted and was therefore not able to service her public debt without resorting to
rollovers of domestic public debt at higher interest rates.
The study recommended that the Kenya Government should take measures to
stimulate productivity, improve revenue collection, restructure its debt and,
institute a sound public debt management strategy. The study also called upon the
developed countries to open up their markets to Kenyan goods.
Citation
Masters Of Business Administration (MBA) Degree, University of NairobiPublisher
University of Nairobi School of Business
Description
A management research paper submitted in
partial fulfillment of the requirement for the
Degree of Master of Business Administration,
Faculty of Commerce, University Of Nairobi