Kenya Should Take Charge of Its Credit Narrative to Empower Future Generations
KRA Chairperson Hon. Ndiritu Muriithi discussing with a dignitary at the credit rating workshop. (Photo By Mwakwaya Raymond)
By Harrison Kivisu
Email, thecoastnewspaper@gmail.com
Kenya is making bold strides toward economic resilience by taking control of its credit narrative a move expected to lower borrowing costs, attract affordable financing, and unlock long-term opportunities for its youthful population.
Daouda Sembene, President and CEO of AfriCatalyst, emphasized the pivotal role credit ratings play in determining the cost of borrowing.
“By strengthening institutional coordination and technical capacity, Kenya is taking control of its credit narrative, AfriCatalyst is committed to supporting this effort, which will help reduce borrowing costs and unlock greater access to affordable financing for sustainable development,” he said.
This comes as Kenya hosts a national workshop on sovereign credit ratings in the port city of Mombasa from October 6–8, 2025.
The event underscore the country’s urgent response to rising borrowing costs and its bid to enhance engagement with global credit rating agencies.
The workshop convened a high-level cohort of policymakers, regulators, private sector leaders, and development experts to build Kenya’s technical capacity in credit rating processes.
Key areas of focus included data preparation, fiscal transparency, and strategic engagement with rating agencies.
Organized by the Government of Kenya in partnership with the United Nations Development Programme (UNDP), AfriCatalyst, the United Nations Economic Commission for Africa (UNECA), the African Center for Economic Transformation (ACET), and the African Peer Review Mechanism (APRM)-with support from the Government of Japan-the workshop represents a major step toward aligning Kenya’s financing strategy with its Vision 2030 and Medium-Term Plan IV (2023–2027).
Participants included senior government officials, leaders in banking and investment, representatives from global and domestic rating agencies, and development partners such as the African Development Bank (AfDB) and the Embassy of Japan.
Despite being reclassified as a middle-income economy in 2014, Kenya’s fiscal pressures remain intense.
The country’s economy is projected to reach $110 billion in 2024, with per capita income surpassing $2,100. Yet, over 32% of government revenue is now consumed by debt servicing, while Kenya’s sovereign credit ratings have remained in the B category—S&P (B), Moody’s (B2), and Fitch (B+).
This credit profile has contributed to higher borrowing costs. For instance, Kenya’s Eurobond issued in June 2021 was priced at 6.3%, significantly above peers such as Senegal.
At the same time, Official Development Assistance has declined sharply from 4.7% of GNI in 2015 to just 3.2% in 2023 making capital markets the main source of development financing.
Improving Kenya’s sovereign creditworthiness is no longer optional—it is a national priority.
A landmark outcome of the Mombasa workshop will be the launch of the Kenya Inter-Agency Credit Rating Committee, a permanent mechanism bringing together the National Treasury, Central Bank of Kenya, Kenya National Bureau of Statistics, Parliament’s Budget Office, the Auditor-General, and other key ministries.
The committee will lead structured engagement with rating agencies, ensure coherent communication of Kenya’s economic fundamentals, and continuously monitor the drivers of its credit ratings.
In addition, the workshop will unveil the Kenya Credit Rating Action Plan (2025–2026), outlining immediate reforms and medium-term strategies to improve fiscal transparency, strengthen coordination, and align Kenya’s credit strategy with Vision 2030 and the Sustainable Development Goals (SDGs).
This national initiative is part of the broader Africa Credit Ratings Initiative (AfCRA)a flagship program led by UNDP and AfriCatalyst, with support from the Government of Japan.
AfCRA works across Africa to address methodological subjectivities in rating assessments, build institutional strength, and enable countries to actively shape investor perceptions.
As Kenya takes charge of its credit narrative, it not only aims to reduce borrowing costs but also positions itself to unlock possibilities for generations to come-proving that with the right strategy and partnerships, sustainable financing for Africa’s future is within reach.
