Kenya's cash-strapped administration received a significant boost as S&P Global Ratings upgraded the nation's credit rating, providing immediate debt-cost relief. This decision, however, does not fully address underlying revenue weaknesses and high spending demands.

• S&P upgraded Kenya's long-term sovereign credit rating to 'B' from 'B-'.
• The upgrade was driven by "reduced near-term external liquidity risks" due to robust export earnings, strong diaspora remittances, and a successful Eurobond buy-back.
• Kenya's current account deficit narrowed to 1.3 percent of GDP in 2024 from 2.6 percent in 2023, and forex reserves reached a record $11.2 billion (Sh1.45 trillion) in July 2025.
• Debt servicing costs remain substantial, with interest payments consuming 33 percent of government revenue, and the national debt has increased by Sh2.85 trillion under President William Ruto's administration.