A group of low-income countries classified as HIPCs have continued to experience difficulties in managing and servicing their huge stocks of external debt. Most of these countries including Kenya are in Sub-Saharan Africa. The relatively high level of Kenya’s external indebtedness and rising...

The paper investigates exchange rate determination in Kenya using vector error correction model approach to uncover the long run relationships. The empirical results show that current account balance has a role to play in the determination of the exchange rate. A rise, which denotes an...