Moody’s upgrades Kenya’s credit rating on lower default risk
The global rating agency said the upgrade reflects a marked strengthening of Kenya’s foreign-exchange reserves, a narrower current account deficit and more stable shilling developments that have eased balance-of-payments pressures and expanded the government’s funding options..
✨ Key Highlights
Moody’s Ratings has upgraded Kenya’s sovereign credit rating from B3 to Caa1. This upgrade reflects a decline in the country’s near-term default risk, supported by stronger external liquidity and improved access to international capital markets.
- Kenya's international reserves rose to $12.2 billion by the end of 2025, equivalent to 5.3 months of import cover.
- The current account deficit narrowed sharply to 1.3 percent of GDP in 2024.
- Kenya raised $3 billion through Eurobond issuances in 2025, using part of the proceeds to buy back $1.2 billion of bonds maturing between 2026 and 2028.
Continue Reading
Read the complete article from Capital Business
Part of the Day's Coverage
Kenyan Financial Reports Reveal Sh11bn SHA Loss, Credit Upgrade, and Infrastructure Funding - January 2026
An audit by Kenya's Ministry of Health has revealed that the Social Health Authority (SHA) lost Sh11 billion due to fraudulent claims from private hospitals. Separately, Tower Sacco revealed a loss of Sh149.5 million in cash deposits held at the embattled Kenya Union of Savings and Credit Cooperatives (KUSCCO) amid a mismanagement scandal. In other financial news, Moody’s Ratings has upgraded Kenya’s sovereign credit rating from B3 to Caa1, reflecting a decline in the country’s near-term default risk. Additionally, Kenya is funding the rehabilitation of the Mombasa Road with Sh4.5 billion from securitised Roads Maintenance Levy (RML) funds, part of a larger Sh21 billion allocation.
