Why are we focusing on this area?


Like many other middle-income countries,Kenya faces deficits in capital resources to finance its development agenda and fiscal commitments. It is therefore pertinent to explore how this gap can be filled through various alternative tools, such as direct investments, debt, domestic revenue, and climate related investments, among others. Of course, while seeking options for further

investment, we must avoid debt traps, and excessively high taxation, while also ensuring that we are tackling climate change. 


The policy question at hand, therefore, is to map out the ideal mix of options, and to progressively entrench the principles of PFM, that the fiscal decisions should be effective, efficient and equitable, and should uphold transparency,

accountability and participation.



What aspects of Macro-fiscal & Debt

Analysis are we focusing on?

In this area, we will:


• Evaluate the effectiveness of debt management strategies, risk management

frameworks, and debt sustainability frameworks adopted by governments.


• Examine existing practices around debt transparency and accountability, to

ensure that debt is used responsibly and at minimum cost.


• Analyze debt alternatives, such as PPPs, foreign direct investment, loan guarantees, grants and so on.


• Assess capital investment plans to ensure that the government is investing in high

value projects at the lowest cost.


• Analyze how Kenya can enhance exports and diversify the economy to reduce

exchange rate risk and the external debt burden.