Saturday, August 23,
2025 - Kenya has received a major boost after global rating agency S&P
upgraded the country’s long-term sovereign credit rating from ‘B-’ to ‘B’,
citing reduced near-term external liquidity risks and improved economic
management under President William Ruto’s policies.
The United States-based agency announced on Friday, August
22nd, that the decision reflects growing confidence in Kenya’s
ability to meet financial obligations, driven by strong growth, tighter fiscal
discipline, and supportive monetary policy.
S&P noted that robust export earnings and steady
diaspora remittances had strengthened Kenya’s foreign exchange reserves, easing
liquidity pressures and narrowing the current account deficit.
The agency added that Eurobond repayments, scheduled
gradually between 2025 and 2027, remain manageable following liability
management measures undertaken earlier this year.
“The stable outlook reflects our view that Kenya’s robust
growth and reduced near-term external liquidity risks balance still-high
interest costs and challenges in consolidating the fiscal position,” S&P
stated.
The rating agency further highlighted that recent monetary
easing has lowered domestic yields, boosting private-sector credit growth.
This upgrade comes less than a year after S&P downgraded
Kenya from ‘B’ to ‘B-’, citing uncertainty following Ruto’s withdrawal of the
controversial Finance Bill 2024.
The bill, which sought to raise Ksh346 billion through new
taxes, was abandoned after nationwide protests that turned deadly.
Despite the setback, S&P now says Kenya’s economic
reforms have restored confidence, offering renewed optimism for debt
sustainability and investor trust.
The Kenyan DAILY POST
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