Navigating debt sustainability in Kenya: Strategic insights for the ministry of finance

Kenya's ambitious economic development goals face significant challenges related to debt sustainability. This paper explores the complex dynamics of Kenya's public debt, focusing on the Ministry of Finance's role in formulating and implementing strategies for achieving long-term debt sustainability while supporting economic growth. With public debt exceeding KSh 10 trillion and surpassing 60% of GDP, concerns about fiscal stability and the adequacy of government revenues for essential services are critical. The country's reliance on external borrowing, combined with vulnerability to global financial fluctuations and exchange rate volatility, further complicates the landscape. Employing a qualitative case study approach, this research incorporates textual analysis alongside semi-structured interviews and questionnaires to gather insights from 15 experts within the Ministry of Finance. The findings indicate a pressing need for a strategic overhaul in debt management. Recommendations include strengthening local revenue generation, enhancing public financial management, and aligning debt strategies with long-term economic objectives. Ultimately, the study highlights the importance of a balanced approach that prioritizes transparency, accountability, and robust governance to effectively address rising debt levels and foster sustainable economic development