World Bank Group2015-02-252015-02-252014-12https://hdl.handle.net/10986/21507Kenya is currently in an expansionary phase of its fiscal policy reflected in a widening primary deficit. The fiscal framework is marked by a significant fiscal expansion over the last three years, 2011/12 to 2013/14. The fiscal stimulus implemented in 2009/10 increased aggregate spending by 2 percent of Gross Domestic Product (GDP). However the envisaged fiscal retrenchment at the end of the program did not materialize and fiscal expansion continued with the general election in 2013. Aggregate expenditure averaged 25 percent and revenue at 18 percent of GDP. The fiscal deficit financed through debt is reflected in the doubling of the primary deficit (commitment basis) now in the range of 3.3 percent of GDP, and the rising stock of public debt from 37 percent to 43 percent of GDP (net of deposits), of which about half 22 percent was external debt in 2013/14. The fiscal developments have seen an increase in the share of debt service in total spending from 13 percent to 15 percent of recurrent spending, equivalent to 2.6 percent of GDP. Kenya s debt service is higher among East Africa Community (EAC) peers, 2 percentage points above Ethiopia and Rwanda, and 1 percentage point higher than Uganda and Tanzania.en-USCC BY 3.0 IGOADMINISTRATIVE COSTSADMINISTRATIVE EXPENDITUREADMINISTRATIVE EXPENSESAGGREGATE EXPENDITUREAGGREGATE FISCALAGGREGATE FISCAL FRAMEWORKAGGREGATE SPENDINGARREARSAUDIT OFFICEBALANCE OF PAYMENTSBANK INVESTORSBOND ISSUESBUDGET ALLOCATIONBUDGET ALLOCATIONSBUDGET COMMISSIONBUDGET DATABUDGET DEFICITBUDGET EXECUTIONBUDGET POLICYBUDGET POLICY STATEMENTBUDGET REVIEWBUDGETARY PRESSURECAPITAL BUDGETCAPITAL FLOWSCAPITAL INVESTMENTSCAPITAL STOCKCENTRAL BANKCENTRAL GOVERNMENTCOMMERCIAL BANKSCOMMODITY PRICESCREDIBILITYCREDIT GROWTHCREDIT MARKETCREDITORSCURRENCY COMPOSITIONCURRENT ACCOUNT DEFICITDEBT COMPOSITIONDEBT INSTRUMENTSDEBT INTERESTDEBT LEVELDEBT MANAGEMENTDEBT SERVICEDEBT STOCKDEBT SUSTAINABILITYDECLINE IN INVESTMENTDEFICITSDEPOSITDEPOSIT LIABILITIESDEPOSITSDISBURSEMENTDOMESTIC BORROWINGDOMESTIC CREDITDOMESTIC CURRENCYDOMESTIC DEBTDOMESTIC MARKETECONOMIC GROWTHECONOMIC RECOVERYEQUIPMENTEUROBONDEXCHANGE RATEEXPENDITUREEXPENDITURE GROWTHEXPENDITURE OUTCOMESEXPENDITURESEXPORT PERFORMANCEEXTERNAL BORROWINGEXTERNAL DEBTFINANCIAL ACCOUNTABILITYFINANCIAL MANAGEMENTFINANCIAL RESOURCESFINANCIAL SUPPORTFISCAL DECENTRALIZATIONFISCAL DEFICITFISCAL MANAGEMENTFISCAL POLICYFISCAL POSITIONFISCAL PRESSUREFISCAL PRESSURESFISCAL RETRENCHMENTFISCAL STANCEFISCAL STRATEGYFISCAL SUSTAINABILITYFISCAL TRANSFERSFIXED INVESTMENTFOREIGN BORROWINGFOREIGN CURRENCIESFOREIGN CURRENCYFOREIGN DEBTFOREIGN DIRECT INVESTMENTFOREIGN FINANCINGFOREIGN INTERESTGLOBAL MARKETSGOVERNMENT BUDGETSGOVERNMENT EXPENDITUREGOVERNMENT FINANCEGOVERNMENT INVESTMENTGOVERNMENT INVESTMENTSGOVERNMENT POLICYGOVERNMENT SECURITIESGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTGROWTH POTENTIALHEALTH SECTORHIGHER INTERESTHIGHER INTEREST RATESHUMAN CAPITALINCOME TAXINCOME TAXESINFLATIONINFLATIONARY PRESSURESINFORMATION SYSTEMINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE INVESTMENTINFRASTRUCTURE INVESTMENTSINFRASTRUCTURE PROJECTSINFRASTRUCTURE SECTORINTEREST PAYMENTINTEREST PAYMENTSINTEREST RATEINTEREST RATE RISKINTEREST RATE SPREADINTEREST RATESINTERNATIONAL FINANCEINTERNATIONAL INTERESTINTERNATIONAL TRADEINVESTINGINVESTMENT DECISIONINVESTMENT PROCESSINVESTMENT REQUIREMENTSLABOR MARKETLEVIESLEVYLIQUID ASSETSLIQUIDATIONLIQUIDITYLOANLOAN REPAYMENTLONG-TERM GOVERNMENT SECURITIESLONG-TERM INSTRUMENTSMACROECONOMIC INDICATORSMACROECONOMIC MANAGEMENTMAINTENANCE BUDGETMARKETABLE ASSETSMATURITYMATURITY PERIODMEDIUM TERM EXPENDITUREMEDIUM TERM EXPENDITURE FRAMEWORKMONETARY FUNDMONETARY POLICYMONEY MARKETNATIONAL AUDITNATIONAL GOVERNMENTNATIONAL GOVERNMENTSNATIONAL POLICYNATIONAL POLICY OBJECTIVESNATIONAL SECURITYNATIONAL TREASURYNEGATIVE SHOCKSNET PRESENT VALUEOUTPUT RATIOPLEDGESPORTFOLIOPRICE VOLATILITYPRIVATE CONSUMPTIONPRIVATE SECTORPROGRAMSPUBLIC BORROWINGPUBLIC DEBTPUBLIC EXPENDITUREPUBLIC EXPENDITURE MANAGEMENTPUBLIC EXPENDITURE REVIEWPUBLIC FINANCEPUBLIC FINANCESPUBLIC INVESTMENTPUBLIC PROCUREMENTPUBLIC SECTORPUBLIC SPENDINGREAL EXCHANGE RATERECURRENT EXPENDITURERECURRENT EXPENDITURESREMITTANCESREPAYMENT RISKRESERVERESERVESRISK FACTORSSERVICE DELIVERYSHARE OF CREDITSHORT-TERM CAPITALSOVEREIGN BONDSUSTAINABILITY ANALYSIST-BILLT-BILL RATEST-BILLST-BONDT-BONDSTAXTAX ADMINISTRATIONTAX COLLECTIONSTAX EFFORTTAX EXPENDITURESTAX INCENTIVESTAX REVENUETAX SYSTEMTAXPAYERSTOTAL DEBTTOTAL EXPENDITURETOTAL SPENDINGTREASURYTREASURY BILLTREASURY BILL RATETREASURY BILLSTREASURY BONDSWEAK BUDGET EXECUTION10.1596/21507