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Message: [QUOTE="Nehanda, post: 23766, member: 2262"] Kenya's Credit Outlook Improves, Moody's Reports. President William Ruto expressed optimism on Saturday. This followed Moody's revision of Kenya's credit outlook from "negative" to "positive". The President stated, "We are doing well," in a message on the social media platform X. Other leaders also celebrated the positive change in Kenya's fiscal position. Environment Cabinet Secretary Aden Duale praised President Ruto. He said the President has guided Kenya towards a stronger, more secure, and stable economy. Duale noted that the Ruto administration has successfully tackled economic challenges, including lowering inflation and interest rates and boosting private-sector lending. Interior PS Raymond Omollo said the revision shows growing confidence in Kenya's economic path under President Ruto. He attributed the improvement to falling inflation, lower interest rates, increased private sector lending, and a stabilizing foreign exchange rate, which he said is due to the government's efforts to reduce debt. Moody's said the positive rating is based on the potential for reduced liquidity risks and improved debt affordability over time. However, it maintained Kenya's local and foreign-currency long-term issuer ratings and foreign-currency senior unsecured debt ratings at CAA1. Moody's also noted high credit risks due to very weak debt affordability and significant gross financing needs compared to funding options. Kenya has faced heavy debt and sought new financing sources since last year following nationwide protests against proposed tax hikes. Moody's said domestic financing costs have begun to decrease as the central bank eases monetary policy. It added that this trend could continue if the government effectively manages fiscal consolidation. Moody's suggested that demonstrating this could improve Kenya's access to both concessional and commercial external funding. [/QUOTE]

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