Effect Of Long-Term Public Debt On Economic Growth In Kenya.

The objective of the research was to evaluate the effect of long-term public debt on economic growth in Kenya from 2001 to 2022. Using time series data, the research employed various econometric analytical techniques, Unit root test, cointegration test, Heteroskedasticity test, auto-correlation test and regression analysis to ensure the robustness of the findings. The results revealed that, long-term debt had a pronounced positive influence on economic growth. These findings underscored the importance of considering the relevance of public debt in policy formulation and economic planning. The implications of these results suggest that policymakers should carefully balance the composition of public debt and optimize economic growth. Specific policy recommendations include optimizing the debt composition to harness the benefits of each type of debt and implementing robust debt management practices. Further research is recommended to explore the optimal mix of debt terms of public debt in Kenya.