Kenya Upgraded by S&P on Reduced External Liquidity Risks

S&P Global Ratings has raised its long-term sovereign credit rating on Kenya to ‘B’ from ‘B-‘ and assigned a stable outlook.

The global credit rating agency said on Friday that the stable outlook “reflects our expectation that Kenya’s robust economic growth and reduced immediate external liquidity risks will help offset pressures stemming from high interest costs and a protracted fiscal consolidation process”.

It said robust export earnings and diaspora remittances have strengthened Kenya’s foreign exchange reserve position, helping to ease liquidity risks related to high external imbalances.

“Eurobond amortization will remain manageable over 2025-2027, supported by debt liability operations earlier this year, while monetary easing over the past year has helped lower domestic yields and stimulate private-sector credit growth,” S&P said.