Republic of Kenya Rating

  • The Supreme Court's ruling to nullify the presidential election results in Kenya is unprecedented in Africa and, in our view, shows signs of improving judicial independence and checks and balances among the arms of government.
  • However, in the short term, it has extended the period of political uncertainty and renewed tensions, weakening Kenya's economic growth momentum.
  • Nevertheless, we consider that, over the medium term, Kenya's economic growth prospects remain strong, underpinning our projections of gradual fiscal consolidation of still-high public deficits.
  • We are therefore affirming our 'B+/B' ratings on Kenya.
  • The stable outlook reflects our expectation that strong growth prospects will facilitate fiscal consolidation and contain increases in external debt over the next year, against a backdrop of uncertainty surrounding the forthcoming presidential election re-run.