After Kenya experienced a series of credit rating downgrades by major global agencies last year, the government has expressed concerns about further downgrades. In its 2025 Public Debt Management Strategy released on Monday, the government lists 'risk of further credit downgrade' as part of the key risks to macroeconomic assumptions.
This comes as the National Treasury revealed that the recent downgrade of the country's credit rating has significantly impacted its ability to borrow commercial loans from various credit sources. "Rating downgrades lead to increased borrowing costs, limiting access to credit markets, low investor confidence, currency depreciation, and debt sustainability risk," the Treasury stated in its report.
President William Ruto, accompanied by Treasury CS John Mbadi at the Inua Biashara MSME Exhibition at the KICC in Nairobi on October 17, 2024.
PHOTO/ William Ruto The downgrades were occasioned by concerns over the country's fiscal policies and rising public debt, which has not eased yet.
