Global rating agency Standard and Poors (S&P), has affirmed the Republic of Kenya ratings at ‘B/B’ with a stable outlook. The agency said over medium term, the country’s economic growth prospects remain strong.
The stable outlook on Kenya reflects S&P’s expectation that strong growth prospects will facilitate fiscal consolidation, contain increases in external debt over next year.
However, S&P says ratings on Kenya are constrained by history of ethnic tensions, low GDP per capita levels, high government fiscal deficits and debt. It also expects after one-time expenditures related to elections, with reduced investment spending, Kenya’s fiscal deficits will start to consolidate.
In S&P’s view, they foresee an increase in payments for oil payments in the first two years on the back of the slight recovery of oil prices in the international market. They also expect the current account deficit (2017 – 2018) to approach 6% of GDP, averaging about 5% in 2019 and 2020.
