This archive report was first published on 25 November 2019.
On November 25, 2019, Moody's Investors Service announced that it would be maintaining Kenya's sovereign credit rating at B2, with a stable outlook.
The rating agency attributed the decision to the country's high public debt levels, which have risen to 62 percent of GDP as of the end of fiscal year 2019, up from 49 percent in fiscal 2015.
Moody's noted that the government's high fiscal deficit and weak institutions have contributed to the country's lower credit rating.
However, the agency also highlighted Kenya's strengths, including a diversified economy with multiple growth sources, favourable growth prospects, and a mature financial sector relative to regional peers.
Kenya's deep capital markets and strong financial sector have enabled the government to issue securities domestically, with the longest tenor being 30 years.
Moody's expects Kenya's economy to experience relatively strong growth, despite large fiscal deficits and debt.
The stable outlook reflects the agency's expectation that Kenya's strong external buffers, including foreign exchange reserves covering close to six months of imports, will mitigate the country's vulnerability to a worsening external environment.
