Kenya has embarked on a fresh push to achieve an investment grade credit rating as part of its long-term economic reform strategy, signalling renewed confidence in the nation’s fiscal management and growth prospects.
The announcement was made during a high-level workshop in Mombasa organized by the National Treasury in collaboration with the United Nations Development Programme (UNDP), the African Peer Review Mechanism (APRM), and other development partners.
The event, titled “Strengthening Sovereign Credit Ratings in Kenya”, brought together rating agencies, regulators, and private sector players to chart a roadmap for improving Kenya’s sovereign rating profile.
The Treasury said the initiative aims to “set a realistic credit rating agenda for the nation aligned with its vibrant economy and stable macroeconomic environment.”
The workshop’s core goals include strengthening Kenya’s institutional capacity to engage effectively with credit rating agencies, developing a multi-stakeholder technical committee, and formulating a structured engagement strategy to monitor and improve ratings.
Speaking at the opening ceremony, Cabinet Secretary for the National Treasury John Mbadi said Kenya’s strong economic fundamentals, driven by diversified growth, make the country ripe for an upgrade. “Kenya is a highly diverse economy and continues to enjoy a stable macroeconomic environment in support of growth,” he said.
According to the Treasury, Kenya’s economy is projected to grow by 4.9% in 2024 and accelerate to 5.3% by 2026, supported by robust fiscal reforms and improved investment flows. Public debt is expected to decline from 55.4% of GDP in 2025 to 52% by 2030, aided by medium-term fiscal consolidation measures.
A sovereign credit rating is a key indicator of a country’s ability to meet its debt obligations, reflecting its overall financial health and creditworthiness. Earning an investment grade credit rating, generally classified as BBB by S&P and Fitch or Baa by Moody’s, signals that a nation poses relatively low risk to investors.
For Kenya, achieving this milestone would make its bonds more appealing to international investors, lower the cost of borrowing, and unlock greater access to long-term financing essential for sustained economic growth.
Kenya’s current ratings stand at B/B+ (S&P and Fitch) and B1 (Moody’s), placing the country in the speculative category. This means investors perceive higher risk, leading to higher interest costs when the government borrows in international markets.
“Improved ratings would signal a stronger commitment to fiscal discipline, boost investor confidence, and ultimately lower the cost of borrowing,” said a Treasury official.
The Treasury’s workshop outlined a three-pronged approach:
Institutional Strengthening: Building analytical capacity and technical engagement with rating agencies.
Policy Coordination: Establishing a National Multi-Agency Technical Committee on credit ratings to harmonize national responses and data sharing.
Strategic Planning: Developing a detailed, actionable plan to improve Kenya’s credit rating outlook while aligning with Vision 2030 and the Sustainable Development Goals (SDGs).
UNDP Resident Representative Jean-Luc Stalon praised Kenya’s commitment, noting that recent upgrades “reflect the country’s readiness for a credit rating agenda that is institutionalized and localized.”
Similarly, Japan’s Ambassador to Kenya, Hiroshi Oghara, said the effort “will promote dialogue leading to more precise credit ratings, increasing investor confidence.”
Dr Stephen Karingi, Director of the UN Economic Commission for Africa (UNECA), acknowledged that Kenya’s reforms in governance and social sectors will accelerate the strengthening of its economic capacity. “The recent rating improvements are a reflection of tangible benefits from fairer assessments, which transition towards lower borrowing costs,” he said.
The Treasury emphasized that the country’s active debt liability management operations, including smoothing out debt maturity profiles, will be key to achieving a stable outlook.
Kenya’s Vision 2030 seeks to transform the country into an industrializing, middle-income economy providing a high quality of life for its citizens. Achieving an investment grade credit rating, Treasury officials said, aligns closely with this goal.
The Treasury’s Public Debt Management Office, which oversees government borrowing, said improving credit ratings will strengthen Kenya’s fiscal sustainability while maintaining a balance between growth and affordability.
“This is about more than numbers,” one official added. “It’s about Kenya’s credibility on the global financial stage.”
The workshop concluded with a commitment to foster collaboration between government institutions, international partners, and private sector players to enhance transparency and predictability in Kenya’s debt management process.
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