OVERVIEWUpcoming elections, drought, and decelerating credit growth pose short-term risks to Kenya’s 2017 economic growth and budgetary performance. Over the longer term, however, we consider Kenya’s economic growth prospects remain strong, underpinning our projections of gradual fiscal consolidation of still-high public deficits. Potential oil production could also lift economic growth, although we view this as a long-term prospect, beyond our forecast horizon. While Kenya's debt stock is high, nearly half of the external debt is from multilateral creditors, while another third is from bilateral creditors. Kenya does not produce stock data for private sector external debt, which makes it difficult to measure accurately the extent of private sector external debt.

Source: The North Africa Journal April 10, 2017 08:15 UTC