World Bank Chief Economist for Africa, Albert Zeufack, and the bank’s Lead Economist, Punam Chuhan-Pole, said borrowing to finance infrastructure projects should be balanced with the dire risks of overborrowing. Kenya’s total public debt stood at Sh3.827 trillion or 51.50 per cent of GDP in December 2016, according to latest data from the Treasury. To continue financing the ongoing and planned mega projects Kenya must reform its public investment mechanism to attract more private players, the World Bank said. “The impact of public investment on economic growth can be improved if countries implement policies that make public investment more efficient,” said Ms Chuhan-Pole. Mr Zeufack said that improving “institutions and procedures governing project appraisal, selection, and monitoring” could produce a sound public investment system for Kenya.

Source: Daily Nation April 19, 2017 18:33 UTC