Kenya's Public Debt Crisis Political Economy Analysis

This Technical Report provides a comprehensive analysis of Kenya's public debt crisis from 2010 to 2023, highlighting the governance challenges associated with rising debt levels. The report identifies key factors contributing to the crisis, including deep-rooted power dynamics, political incentives, and opaque institutional behaviors. It outlines how public debt, while having the potential to drive development, has instead led to stagnation and inequality due to mismanagement and political motivations. The report documents seven key findings, such as the influence of elite interests on debt processes, the exclusion of the public from domestic debt markets, and the underutilization of Parliament's oversight role. Additionally, it presents recommendations aimed at enhancing civic engagement, improving legislative oversight, and reforming debt issuance processes. The findings underscore the urgent need for transparency and accountability in Kenya's economic governance to address the ongoing debt crisis effectively.