Kenya could unlock cheaper financing on the international markets riding on availability of timely data used by credit rating agencies to assess the country’s credit worthiness.
Speaking during a workshop aimed at strengthening sovereign credit ratings in Kenya, Treasury and Economic Planning Cabinet Secretary John Mbadi said Kenya is targeting to among others improve data as well as build capacity which will improve assessment of the country’s credit profile to investors.
Kenya’s low ratings have been attributed to increase in debt service as a share of revenues, further squeezing spending on development programmes such as infrastructure, health, education, and climate resilience.
“Kenya’s sovereign credit ratings, currently B, B-, Caa1 Negative by S&P, Fitch and Moody’s, respectively, this constrained rating profile has led to higher borrowing costs with yields driven by a perceived elevated country risk premium and credit spread,” said Mbadi.
This comes on the backdrop Kenya’s long-term sovereign credit rating being upgraded from B- to B with a stable outlook by global rating agency S&P.
“The upgrade was not just about improved statistics but also reflected deliberate reforms, notably the 2025 Finance Act, which enhanced tax compliance and signaled fiscal credibility. These measures strengthened investor confidence and underscored Kenya’s commitment to responsible economic management,” he added.
Through the workshop, Treasury is also seeking the setting up of a Multi-stakeholder Kenya Credit Rating Committee to engage rating agencies and monitor rating drivers and develop a detailed, actionable plan to improve Kenya’s credit rating outlook and lower the cost of debt, supporting the realization of Vision 2030 and the SDGs.
