Effect of public debt on economic growth in Kenya.

      Аннотация: The book is valuable to all countries since public debt on financing country budget is common. The problem of public debt management affects even individuals. In Kenya particularly it is a thorny issue because more than 50% of the budget is financed through debt and hence need to utilize finances well and more so on infrastructural development rather than on recurrent expenditure. Other ways of financing country budgets need to be explored to avoid accumulating debt leading to increasing the cost of borrowing. In the short run the author realized a crowding out effect of private investors existed and if Kenya is not careful with the level of borrowing, in the long run, a debt overhang effect will be felt whereby money meant for development will be used to paying the debt service or cost of borrowing.

Ключевые слова: crowding out effect, Domestic Debt, Debt Overhang effect, external debt, Total debt servicing