Emmanuel Omurunga
Moody’s Praises President Ruto for Fiscal Management of Kenya’s Debt
Moody’s has commended President William Ruto for ensuring that Kenya meets its debt obligations, even amid the country’s economic challenges.
In a statement released on Saturday, the U. S. firm noted that further improvements could be made if Kenya enhances its fiscal position by expanding revenue collection streams, which would improve access to concessional and external loans.
“A positive track record could enhance Kenya’s ability to secure concessional and commercial external funding. Successful revenue collection efforts could also lead to better debt affordability. However, Kenya has historically struggled to significantly and sustainably increase revenue, despite recent initiatives,” Moody’s stated.
The agency, however, indicated that the upgrade of Kenya’s status to positive is limited, given the current Caa1 rating, which reflects considerable liquidity risks.
It also pointed out that Kenya’s financial stability has been severely impacted by several factors, including high levels of corruption.
Moody’s recommended that President Ruto’s administration focus on developing a broad, diversified economy that can withstand unexpected challenges.
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