KENYA: Ruto Praises Moody’s Positive Credit Outlook For Kenya

       By Lisbeth Micheni, Kenya 

Kenyan President William Ruto, expressed optimism following Moody’s revision of Kenya’s credit outlook from “negative” to “positive.”

On Saturday, Ruto described the development as a sign that the country’s economic progress is on the right track, stating, “We are making great strides,” in a post on X.

Several government officials joined the President in celebrating the revised fiscal outlook.

Environment Cabinet Secretary Aden Duale applauded Ruto’s leadership, crediting him for fostering a stronger, more secure economy.

Duale emphasised that the improved rating reflects achievements such as reducing inflation, stabilising interest rates, and creating a favorable environment for private-sector growth.

Interior Principal Secretary Raymond Omollo highlighted that the shift demonstrates growing trust in Kenya’s economic future.

He attributed the progress to effective debt management, a stable exchange rate, and declining inflation.

Moody’s explained that the positive adjustment is due to better liquidity prospects and improved debt management over time.

However, the agency retained Kenya’s long-term credit ratings at CAA1 (Civil Aviation Authority International), pointing to persistent challenges like high debt levels and significant financing needs.

The report noted that with stable inflation and a steady exchange rate, domestic borrowing costs are decreasing, thanks to government monetary policies.

If fiscal consolidation efforts are sustained, Kenya could see additional reductions in borrowing costs and better access to external funding sources.

Moody’s also stated that the government’s commitment to managing its debt burden and addressing fiscal issues will likely open new avenues for concessional and commercial financing.

Kenya has been working to address its debt challenges amid rising costs and public protests against higher taxes, signaling that further reforms could boost investor confidence.