On August 22, 2025, S&P Global Ratings raised Kenya’s long-term sovereign rating from B- to B, maintaining a stable outlook
Easing of near-term external liquidity risks, underpinned by strong export performance and sizeable diaspora remittances
Foreign exchange reserves climbed to a record US $11.2 billion by July 2025, up from about US $6.6 billion at the end of 2023
Eurobond operations: A US $1.5 billion issuance in February 2025, alongside a buy-back, significantly cut near-term Eurobond repayments—from US $300 million to US $108 million annually over 2025–2027
Improved domestic funding conditions: The Central Bank of Kenya cut its policy rate by 350 basis points since August 2024, bringing it down to 9.5% by August 2025. This helped reduce 91-day Treasury bill yields from 16% (July 2024) to about 8% (July 2025)
Narrowing current account deficit: From 2.6% of GDP in 2023 to 1.3% in 2024
Additional note: The short-term sovereign rating was affirmed at B, while the transfer and convertibility assessment was upgraded from B to B+, signaling better confidence in Kenya’s currency and capital flow dynamics
In Summary
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S&P upgraded Kenya to “B” with a stable outlook on August 22, 2025, citing improved liquidity, robust reserves, and successful debt operations.
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Moody’s improved the outlook to “positive” earlier in January 2025, though the rating remains Caa1.
This signals renewed investor confidence as Kenya navigates liquidity pressures, though maintaining progress will require continued fiscal reform and debt management.
