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January 28, 2026
2w ago

Moody’s Signals a Turn for Kenya After Months of Debt Anxiety

Moody’s Signals a Turn for Kenya After Months of Debt Anxiety

Kenya has gone from high risk and might struggle to pay its debts to still risky but less likely to default than before, as the Treasury plans a new a Eurobond buyback...

✨ Key Highlights

Moody's has upgraded Kenya's credit rating from Caa1 to B3, citing reduced default risk and stronger external liquidity. This improvement reflects the country's growing foreign exchange reserves and a decrease in its account deficit.

  • Foreign exchange reserves increased from $9.2 billion in 2024 to $12.2 billion by the end of 2025.
  • Kenya completed two Eurobond issuances totaling $3 billion in 2025.
  • The country's local currency ceiling was raised from B1 to Ba3, and its foreign currency ceiling to B1 from B2.

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