ADVERTISEMENT

Kenya's economy is stable and poised for growth - S&P ratings

The ratings agency cited the country’s strong monetary and fiscal flexibility and a resilient economy which will offset the risk of high external debt.

___6513661___https:______static.pulse.com.gh___webservice___escenic___binary___6513661___2017___4___11___12___nairbi+city
ADVERTISEMENT

Global credit rating agency, Standard & Poor’s has affirmed Kenya’s short and long term foreign and local currency sovereign credit ratings at “B+/B” with a stable outlook on strong external position and monetary policy flexibility.

“The ratings on Kenya are supported by its monetary flexibility, liquid domestic financial markets and per capita GDP growth as well as an increasingly diversified economic base,” said S&P in new outlook on Kenya.

The rating serves to boosts the country investor's confidence  and also assures the market and the public alike that the cost of doing business as well as borrowing is likely to remain in check.

The latest rating is good news  for the country, especially in the wake of increased public criticism over increasing public debt.

It also depicts Kenya favorably as an ideal investment destination and therefore attracts foreign investors.

Threats to economy

However despite the positive rating, S&P cautioned that there still remain risks which may likely clip Kenya’s growth.

The August general elections is one such risk S&P highlighted because Kenyan economy ordinarily takes a dip every five years as businesses hold back investments to await the outcome of elections.

“Our ratings on Kenya are constrained by the country's history of ethnic tensions” part of the report read.

Agriculture, which is the main backbone of the economy, is expected to perform below bar this year as a result of food producing regions in Rift Valley having been severely affected by the ongoing drought.

Early this year the Central Bank of Kenya downgraded the country’s economy from 5.9 per cent to 5.7 per cent, citing uncertainties in the global economy amid a ravaging drought.

ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Linet Toto excited as she unveils sleek ride after 1 month in office [Photos]

Linet Toto excited as she unveils sleek ride after 1 month in office [Photos]

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Diwali 2022: Is Monday a public holiday in Kenya?

Diwali 2022: Is Monday a public holiday in Kenya?

UNESCO names Senegal as the true home of Jollof Rice over Ghana and Nigeria

UNESCO names Senegal as the true home of Jollof Rice over Ghana and Nigeria

Top 10 African countries with the highest economic prospects for 2023

Top 10 African countries with the highest economic prospects for 2023

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

ADVERTISEMENT