Global credit ratings agency S&P has upgraded Kenya’s long-term sovereign credit rating from ‘B-‘ to ‘B’, in what comes as good news for Kenyans.

While citing reduced near-term external liquidity risks, S&P said that vibrant export earnings and diaspora remittances have bolstered Kenya’s foreign exchange reserves.

These factors, S&P says in a statement, have helped in easing pressures related to high external imbalances.

“Robust export earnings and diaspora remittances have strengthened Kenya’s foreign exchange (FX) reserve position, helping to ease liquidity risks related to high external imbalances,” the global ratings agency says.

Consequently, S&P says that Eurobond amortisation will remain manageable over 2025-2027, supported by debt liability operations earlier this year.

This is good news for Kenya and its government, as S&P now anticipates that Kenya’s solid economy to grow and improve liquidity outlook to offset pressures stemming from high interest costs and monetary policies.

In 2024, S&P downgraded Kenya’s ratings from ‘B’ to ‘B-‘, citing uncertainties in Kenya’s future economic stability. This was a direct response after President William Ruto declined to sign into law the Finance Bill 2024.

“The downgrade reflects our view that Kenya’s medium-term fiscal and debt outlook will deteriorate following the government’s decision to rescind all tax measures proposed under the 2024/2025 Finance Bill,” S&P stated at the time.

President Ruto, on Wednesday, August 20, said the country’s economy will exceed official forecasts. Ruto said the economy would grow by 5.6% in 2025, which is higher than Treasury’s projection of 5.3%, and Central Bank of Kenya’s 5.2%.

Last year, Kenya recorded an economic growth of 4.7%.

Kenya’s economy is rebounding through tough, but necessary reforms under President Ruto, driving stability.