IJSRP, Volume 8, Issue 11, November 2018 Edition [ISSN 2250-3153]
This seeks to examine the relationship between external public indebtedness and economic growth in Kenya. It employs time series data for the period 1970 - 2010 from World Development Indicators and Kenya National Bureau of Statistics. The study objectives are estimated using Ordinary Least Square (OLS). The results reveal a negative significant relationship between external public debt and economic growth. Capital formation also has a significant positive contribution to economic growth. The study recommends that the policies of debt management in Kenya be reviewed and improved. The government should pay more attention to the debt management profile particularly on the expenditure items and diversify the economy to generate more revenue and avoid external borrowing to the extent possible.