The Impact Of Foreign Aid On Public Expenditure: (the Case Of Kenya)

ABSTRACT Foreign aid represents an important source of finance in most countries in sub-Saharan Africa (SSA), where it supplements low savings, narrow export earnings and thin tax bases. In recent years the donor community has become more stringent about fiscal discipline and good policies, which has led to freezing of donor funds to governments that do not conform with aid conditionalties.The objective is to determine the relationship between the foreign aid and the public expenditure ,the trend and growth rate of foreign aid and the trend and growth rate of the public expenditure. The Kenyan…