Debt and Economic Growth in Kenya: A Pre-COVID 19 Analysis

Luka K. Kiptui

Abstract: This paper sought to establish the relationship between public debt and economic growth in Kenya over the period 1970 ? 2019. Secondary data on domestic debt, external debt and GDP growth was obtained from the Central Bank of Kenya and the World Bank. The data collected was analyzed using both descriptive and inferential statistical procedures. The findings indicate that external debt has significant negative impact on economic growth in the long run with no noticeable effects in the short run. On the other hand, domestic debt was found to have significant negative effect on growth in the short run, and no significant impact on growth in the long run.

Keywords: Debt, Economic Growth, Kenya