Kenya is currently in an expansionaryphase of its fiscal policy reflected in a widening primarydeficit. The fiscal framework is marked by a significantfiscal expansion over the last three years, 2011/12 to2013/14. The fiscal stimulus implemented in 2009/10increased aggregate spending by 2 percent of Gross DomesticProduct (GDP). However the envisaged fiscal retrenchment atthe end of the program did not materialize and fiscalexpansion continued with the general election in 2013.Aggregate expenditure averaged 25 percent and revenue at 18percent of GDP. The fiscal deficit financed through debt isreflected in the doubling of the primary deficit (commitmentbasis) now in the range of 3.3 percent of GDP, and therising stock of public debt from 37 percent to 43 percent ofGDP (net of deposits), of which about half 22 percent wasexternal debt in 2013/14. The fiscal developments have seenan increase in the share of debt service in total spendingfrom 13 percent to 15 percent of recurrent spending,equivalent to 2.6 percent of GDP. Kenya s debt service ishigher among East Africa Community (EAC) peers, 2 percentagepoints above Ethiopia and Rwanda, and 1 percentage pointhigher than Uganda and Tanzania.