World Bank Urges Kenya to Cut High Debt Levels Sapping Economic Growth
- Public debt stood at 68% of GDP in 2021 versus 37% in 2010
- Debt burden is squeezing fiscal space to fund development
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The World Bank urged Kenya to reduce high debt levels that are limiting the inclusiveness and sustainability of the east African nation’s economic growth.
A sharp rise in borrowing driven partly by large increases in debt-financed public investments is “eroding fiscal space and raising debt sustainability concerns,” the Washington-based lender said Tuesday in a Country Economic Memorandum.