RESOLVING THE DEBT SUSTAINABILITY ISSUES FROM A LEGAL AND INSTITUTIONAL PERSPECTIVE: A KENYAN CASE STUDY

Abstract

The paper argues that the promulgation of the Constitution of Kenya 2010, the enactment of the enabling domestic laws,1and the medium-term debt management strategies prepared by the Kenyan Ministry of Finance has not helped much in terms of transforming the management of public debt in Kenya. The paper attributes this to a set of inter-related factors, mainly the failure by Parliament to enforce legislative measures. The paper further observes that failure by Parliament to objectively conduct oversight in the process of public debt management has led to the adoption of public debt policies which undermine human rights. In addition, it is indicated that the country loses significant revenue through illicit financial flows, which if the loopholes facilitating such are sealed, could steer the country towards a sustainable public debt.