The National Treasury, in collaboration with the United Nations Development Programme (UNDP) and other agencies, has concluded a national workshop themed “Strengthening Sovereign Credit Ratings in Kenya” in Mombasa.
The workshop, which commenced on Monday, October 6, 2025, aimed to support the government’s plan to develop a practical credit rating agenda that reflects Kenya’s diverse economy and stable, growth-friendly macroeconomic environment.
Speaking in Mombasa on October 6, 2025, National Treasury Cabinet Secretary John Mbadi said that Kenya enjoys a stable macroeconomic environment conducive to growth. Mbadi highlighted Kenya’s GDP growth in the second quarter of 2025 and the recently revised Kenya’s credit ratings by international credit rating agencies.
In the second quarter of 2025, Kenya’s GDP grew by 5.0% compared to 4.6% in a similar period last year. The expansion was mainly driven by growth in agriculture, transport and storage, and financial sectors. The sectors grew by 4.4%, 5.4%, and 6.6% respectively.
According to the big three credit rating agencies, S&P, Fitch, and Moody’s, Kenya remains in the non-investment grade category. In July 2025, Fitch maintained a B- assessment, highlighting caution over Kenya’s fiscal risks despite upside potential. S&P upgraded Kenya’s credit rating to B in August 2025, from B- the previous year. As of January 2025, Moody’s rating stood at Caa1.
“This constrained rating profile has led to higher borrowing costs with yields driven by a perceived elevated country risk premium and credit spread. Debt servicing as a share of revenues has grown over time, further squeezing fiscal space and threatening to crowd out critical investments in infrastructure, health, education, and climate resilience,” said John Mbadi.
The Cabinet Secretary added that the recent upgrades in credit rating showed substantial gains of fairer assessments, translating to a decline in debt costs.
Credit Ratings Workshop Objectives
The workshop’s main objectives included strengthening Kenya’s ability to engage with global Credit Rating Agencies (CRAs), facilitating the formation of a National Multi-Agency Credit Rating Committee to coordinate Kenya’s credit rating strategy, and drafting a blueprint to help improve the country’s credit outlook and ultimately lower borrowing costs.
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