Kenya’s long-term sovereign credit rating has been raised by S&P Global Ratings to ‘B’ from ‘B-’, with the agency citing reduced external liquidity pressures as a key factor. The move reflects stronger foreign exchange reserves supported by higher export revenues and resilient diaspora remittances, Reuters reported.
The ratings agency highlighted that while external borrowing costs remain elevated and fiscal adjustments are progressing slower than targeted, Kenya’s economic outlook remains broadly positive. Growth is projected at 5.6% in 2025, above both the Finance Ministry’s 5.3% forecast and the Central Bank’s 5.2% projection, which helped justify maintaining a ‘stable’ outlook on the rating.
S&P’s assessment pointed out that Kenya’s stronger liquidity position enhances its ability to meet near-term debt obligations, even as long-term challenges around debt sustainability persist. Analysts noted in Reuters coverage that the improved rating could provide Kenya with greater access to global capital markets and potentially lower borrowing costs.
The upgrade marks a significant step in restoring investor confidence, as Kenya continues to balance fiscal pressures with the need to stimulate growth. Market observers emphasized that sustained reforms will remain crucial to consolidating these gains and safeguarding the economy against external shocks.
