Mombasa, Kenya — October 6, 2025: Kenya is taking decisive steps to strengthen its sovereign credit rating and reduce the cost of borrowing by hosting a national workshop on credit ratings in Mombasa from October 6–8, 2025.

The Cabinet Secretary at  the National Treasury and Economic Planning, Hon. FCPA John Mbadi said: "Credit ratings shapes development finance and is a vital part of the financial development ecosystem. A stronger sovereign rating is a catalytic milestone because it lowers the country’s perceived risk profile across international capital markets, directly reducing the cost of borrowing and widening the pool of available financing. This calls for effective engagement with credit agencies."

The high-level workshop is convening policymakers, regulators, development partners, and private sector leaders to build Kenya’s technical capacity in managing sovereign credit ratings, from data preparation and fiscal transparency to effective engagement with global rating agencies.

Speaking ahead of the meeting, Dr. Daouda Sembene, President and CEO of AfriCatalyst, said: “Credit ratings directly shape the cost of borrowing. By strengthening coordination and technical capacity, Kenya is moving from being rated to driving its rating story. This effort will reduce borrowing costs and expand access to sustainable financing for development.”

The workshop is organized by the Government of Kenya in partnership with the United Nations Development Programme (UNDP), AfriCatalyst, United Nations Economic Commission for Africa (UNECA), African Center for Economic Transformation (ACET), and the African Peer Review Mechanism (APRM), with support from the Government of Japan. It aligns with Kenya’s Vision 2030 and Medium-Term Plan IV (2023–2027), which emphasize fiscal stability and sustainable economic growth.

During the event, UNDP Resident Representative in Kenya, Dr. Jean-Luc Stalon, highlighted Kenya’s resilience and reform momentum following its recent credit rating experience.

“Kenya’s upgraded credit rating shows that ratings are not fixed,” said Dr. Stalon. “A downgrade by  in 2024 was reversed within a year through credible reforms and sustained engagement. Stronger ratings are instruments of trust, they determine whether Kenya can access affordable finance to power Vision 2030 and achieve the SDGs. Better ratings mean fairer borrowing terms, more fiscal space for social investments, and new opportunities for Kenya’s youth.”

Kenya’s economy, valued at USD 110 billion in 2024, has grown steadily since achieving middle-income status in 2014. Meanwhile, Official Development Assistance has declined from 4.7% of Gross National Income (GNI) in 2015 to 3.2% in 2023, making capital markets the main source of long-term development financing.

Interest servicing now consumes over 32% of government revenues, while the country’s sovereign ratings are at Caa1/Positive by Moody’s, B-/Stable by Fitch and B/Stable by S&P.  On 2nd October the government successfully conducted a liability management operation which raised US$1.5bn in two tranches of a 7-year at 7.875% and a 12-year at 8.7% to prepay the 2028 maturity.  

The Deputy Ambassador of Japan in Kenya Mr. Hiroshi Ogihara said “The business environment and private sector investment in Africa have long been constrained by limited financial and high borrowing costs. Over the next decade, African nations need to raise substantial investment capital, with estimates indicating a need for approximately $100 billion annually for infrastructure, $45 billion for energy and $30 billion for climate change initiatives. Addressing borrowing costs and ensuring adequate financing have been urgent development priorities for Africa.”

A major outcome of the Mombasa workshop will be the launch of the Kenya Inter-Agency Credit Rating Committee, bringing together the National Treasury, Central Bank of Kenya, Kenya National Bureau of Statistics, Parliament’s Budget Office, Auditor-General, and other key ministries.

The committee will provide a permanent coordination mechanism for structured engagement with rating agencies, coherent communication of economic data, and continuous monitoring of Kenya’s credit indicators.

In addition, participants will adopt a Kenya Credit Rating Action Plan (2025–2026) outlining immediate and medium-term reforms to strengthen fiscal transparency, institutional coordination, and sovereign rating management in line with Vision 2030 and the Sustainable Development Goals.

Dr. Stephen Karingi, the Director, Macroeconomics, Finance and Governance Division at the UN Economic Commission for Africa said: “We believe that sovereign credit ratings must be embedded within a broader strategy for capital markets development. Strong ratings can unlock access to long-term financing, but only if they are paired with deep, resilient, and inclusive financial markets.”

The workshop is part of the Africa Credit Ratings Initiative (ACRI), a flagship programme by UNDP and AfriCatalyst, supported by the Government of Japan. AfCRI works with African countries to enhance engagement with rating agencies, address methodological biases, and strengthen national credit management frameworks. 

Note to Editors: 

Africa Credit Ratings Initiative (ACRI)

The financing landscape in Africa has changed dramatically over the past few decades. With more than half the continent now at middle-income status, the relative role of Official Development Assistance (ODA) has declined, and more countries are now borrowing on global capital markets. UNDP Africa, in partnership with AfriCatalyst, launched the Africa Credit Ratings Initiative in 2024, which includes three key components: the Africa Credit Ratings Resource Platform with data, methodologies, and research; a Concilium of advisors, providing technical support on credit ratings; and a community of practice linking professionals and practitioners working on credit ratings.

Since July 2024, UNDP and partners have jointly organized 8 capacity building workshops under the Africa Credit Ratings Initiative, training 232 officials from 18 African countries through 5 national and 3 regional workshops. The workshop strengthened UNDP’s convening role and partnership with the government, particularly at a time when funding priorities are rapidly shifting.

For more information visit: https://www.undp.org/africa/credit-ratings-resource-platform 

About UNDP Kenya

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AfriCatalyst

Fifi Esther

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AfriCatalyst