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flag Kenya's high public debt risks economic growth, prompting World Bank calls for fiscal reforms.

flag Kenya's public debt is at high risk, with interest payments absorbing about a third of tax revenue, despite improvements in macroeconomic indicators like declining inflation and a stable exchange rate. flag The World Bank has lowered Kenya's 2025 growth forecast to 4.5% due to high debt and reduced private sector credit. flag To address these issues, the World Bank recommends fiscal reforms, including tax base broadening and improving public spending efficiency, to reduce the debt-to-GDP ratio and boost inclusive growth.

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