Sunday, January 26, 2025 - Moody's rating has praised President William Ruto for ensuring Kenya honors its debt obligations, despite the country's economy being in critical condition.
In a statement on Saturday, the United States firm stated that
more would
be achieved if the country committed to strengthening its fiscal status through
expanding revenue collection avenues, which would consequently increase the
score to access concessional and external loans.
"Such
a track record would also boost Kenya's access to concessional and commercial
external funding. Revenue collection efforts, if successful, present the
potential for further improvements in debt affordability, although Kenya has
struggled to expand revenue significantly and durably in the past,
notwithstanding recent measures," said Moody's.
Moody's,
however, suggested that the review of Kenya's status to positive is negligible,
given that the current rating is at Caa1, which means the country is still
exposed to substantial liquidity risks.
It,
however, noted that Kenya's financial health has been grossly affected by,
among other factors, high levels of corruption.
The
firm recommended to President William Ruto's administration that it should
focus on building a wide, diversified economy that is resilient to unforeseen
shocks.
The Kenyan DAILY POST.
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