Macroeconomic Drivers of Economic Growth

Kenya's GDP growth is hampered by high fiscal deficits, interest rates, and volatile exchange rates. As a result, the economy has experienced sluggish cycles of low economic growth, prompting policymakers to revise their policies. ability address macroeconomic instability hinges on its increase growth. Divergent perspectives relationship between selected variables revealed additional evidence. The goal this research was see how certain drivers affected study based theory endogenous study, which philosophical paradigm positivism, used an explanatory design secondary data from Kenya Bureau Statistics, covered years 1990 2020. In empirical analysis, bound test for long-run Autoregressive Distributed Lag model (ARDL) evaluate variables. tested stationarity using Augmented Dickey Fuller method. long run ARDL results showed that coefficients rate 0.080 (p-value 0.033 < 0.05), lending -0.172 0.011 broad money supply 0.242 0.001 0.05) all had significant impact will be useful in forming monetary policy, as well informing government about potential solutions challenges. According CBK should pursue policies ensure stability, determine effective keep deficit line with