Global ratings agency Moody’s upgraded Kenya’s sovereign credit rating to B3 from Caa1 and revised the outlook to stable, citing a significant reduction in near-term debt default risk. In a statement on Tuesday, Moody’s said the upgrade was driven by strengthened external liquidity and improved access
to domestic and international financing.
The agency highlighted higher foreign exchange reserves, a narrower current account deficit and a more stable exchange rate, noting that reserves stood at $12.2 billion, according to the Central Bank. Moody’s projected that Kenya’s fiscal deficit would remain at 6 percent of GDP, while public debt would stabilise at 67 percent of GDP.
Reacting on Wednesday, Principal Secretary at the National Treasury Chris Kiptoo said the upgrade reflects Kenya’s improved capacity to meet external obligations and reduced refinancing pressures. He added that the stable outlook signals confidence in the sustainability of recent gains, supported by
ongoing reforms and better access to international capital markets.