Answer to Question #171629 in Economics for Flozzy kamau

Question

Using proper examples and illustrations discuss effects of covid-19 on public finance in kenya

Answer 1

Covid-19 has left Kenya in a precarious position. A large debt burden and the impact of the pandemic are eroding all the gains made in the fight against poverty over the last few decades.

The country implemented a Covid-19 response plan worth 0.8 per cent of Gross Domestic Product (GDP) in 2020.

The economic strategy of the government hinges on the expectations of new external financing and a substantial consolidation plan.

Without support from the international community, in the form of increased Official Development Assistance (ODA) and debt relief, Kenya risks being left trapped in a vicious cycle of economic crisis, poverty and debt.