The S&P Global Rating Agency has upgraded Kenya's long-term sovereign credit rating from 'B-' to 'B', citing reduced near-term external liquidity risks. This upgrade, announced on Friday, August 22, anticipates improved financial obligations due to strong economic growth and better monetary policies, marking a turnaround from a previous downgrade in 2024.

• The upgrade from 'B-' to 'B' is attributed to Kenya's robust export earnings and dollar inflows from diaspora remittances, which have narrowed the current account deficit.
• S&P Global Rating Agency noted that Kenya's Eurobond payments are expected to remain manageable, supported by earlier debt liability operations.
• This positive rating comes after a 2024 downgrade following President William Ruto's decision to withdraw the Finance Bill 2024, which aimed to generate Ksh346 billion through new taxes.