Tanzania overtakes Kenya in latest ranking
Worrying development
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Tanzania was for the first time upgraded to category B1 which is a notch higher to Kenya's category B2.
Kenya was previously in the B1 category but was downgraded in February 13 over concerns of its growing borrowing and excessive debt.
Economists have raised the red flag over the fast-maturing debt that is facing the country.
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In the budget year 2018-2019, a whopping Sh1 trillion is expected to go towards the payment of matured debt.
The amount is almost double from the Sh658.23 billion that was budgeted for the year ending 2018.
Despite Tanzania's credit worthiness, Moody's warned over the poor macro-economic environment which could cost it its newly founded status.
“Uncertainty over the regulatory environment and policy stance of the government, particularly as it relates to the mining sector, could have a long-term negative impact on the country’s growth potential and ability to attract foreign investment,” Moody’s stated in a statement on Tanzania’s rating on Monday.
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