Kenya’s sovereign credit rating has been upgraded by S&P Global Ratings, moving from ‘B-’ to ‘B’, reflecting reduced financial risks and improved outlook for the economy.
In its latest assessment, S&P noted that Kenya’s fiscal and external liquidity pressures have eased, supported by government efforts to stabilize public finances, access international capital markets, and manage external debt obligations.
The agency also highlighted the country’s resilient economic growth despite global challenges.
The upgrade is expected to strengthen investor confidence in Kenya’s financial markets, potentially lowering borrowing costs and attracting more foreign investment.
It comes at a crucial time as the government continues to implement reforms aimed at boosting revenue collection, curbing expenditure, and diversifying the economy.
However, S&P maintained a cautious tone, pointing out that Kenya’s public debt remains high, and fiscal discipline will be key to sustaining the positive outlook.
Political stability and consistent policy implementation were also cited as vital factors for maintaining the improved rating.
Kenya’s Treasury welcomed the upgrade, saying it underscores the country’s commitment to sound economic management and structural reforms.
Analysts believe the rating improvement could provide momentum for future Eurobond issuances and enhance Kenya’s position in regional and global markets.
