Kenya’s credit rating is upgraded to “B” by S&P due to the reduction of liquidity risks

Kenya’s long-term sovereign credit rating was raised from ‘B-‘ to ‘B’ on Friday by the international credit ratings firm S&P, which cited lower short-term external liquidity issues.

According to a statement from the rating agency, Kenya’s foreign exchange reserves have been strengthened by strong export revenue and diaspora remittances, which has helped reduce pressures associated with significant external imbalances.

S&P anticipates that pressures from high interest rates and a sluggish budget consolidation process will be countered by Kenya’s strong economic growth and improved liquidity prospects.

Despite increased U.S. tariffs and other obstacles, President William Ruto stated on Wednesday that Kenya’s economic growth is anticipated to surpass official projections this year.

He noted that the economy is predicted to increase by 5.6% this year, higher than the 5.3% and 5.2% predicted by the Kenyan finance ministry and central bank, respectively.

Kenya’s economy grew by 4.7% in the previous year.
‘Stable’ was the agency’s assessment of the nationwide outlook.