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S&P Global Ratings has upgraded Kenya’s credit rating from B- to B, indicating improved financial stability, though analysts urge continued fiscal prudence. This comes as the National Treasury has raised concerns that debt servicing and pension payments consume almost half of Kenya’s ordinary revenues, causing development expenditure to drop. Stakeholders in Kenya's manufacturing sector are also expressing strong disapproval regarding the adverse effects of heavy taxation on their operations, urging a review of current fiscal policies. In a move to streamline financial management, the Treasury has issued strict guidelines to state agencies as the 2026-27 budget cycle approaches.
Kenya’s credit rating has been upgraded by S&P Global Ratings from B- to B, a positive development indicating improved financial stability. However, analysts are emphasizing the need for continued fiscal prudence despite this upgrade.
Almost half of Kenya’s ordinary revenues are being consumed by debt servicing, pension payments, and salaries for constitutional office holders, indicating a significant strain on the national budget. The National Treasury has raised concerns over the shrinking fiscal space as development expenditure drops.
Stakeholders in Kenya's manufacturing sector are expressing strong disapproval regarding the adverse effects of heavy taxation on their operations and the broader economy, urging for a review of current fiscal policies. This highlights a significant concern among businesses about the sustainability of their activities under the prevailing tax regime.
The Treasury in Kenya has issued strict guidelines to state agencies as the 2026-27 budget cycle approaches. This move aims to streamline financial management and planning across government entities.