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Tag: credit rating

  • Treasury keen on addressing data gaps for improved credit rating

    Treasury keen on addressing data gaps for improved credit rating

    Kenya could unlock cheaper financing on the international markets riding on availability of timely data used by credit rating agencies to assess the country’s credit worthiness.

    Speaking during a workshop aimed at strengthening sovereign credit ratings in Kenya, Treasury and Economic Planning Cabinet Secretary John Mbadi said Kenya is targeting to among others improve data as well as build capacity which will improve assessment of the country’s credit profile to investors.

    Kenya’s low ratings have been attributed to increase in debt service as a share of revenues, further squeezing spending on development programmes such as infrastructure, health, education, and climate resilience.

    “Kenya’s sovereign credit ratings, currently B, B-, Caa1 Negative by S&P, Fitch and Moody’s, respectively, this constrained rating profile has led to higher borrowing costs with yields driven by a perceived elevated country risk premium and credit spread,” said Mbadi.

    This comes on the backdrop Kenya’s long-term sovereign credit rating being upgraded from B- to B with a stable outlook by global rating agency S&P.

    “The upgrade was not just about improved statistics but also reflected deliberate reforms, notably the 2025 Finance Act, which enhanced tax compliance and signaled fiscal credibility. These measures strengthened investor confidence and underscored Kenya’s commitment to responsible economic management,” he added.

    Through the workshop, Treasury is also seeking the setting up of a Multi-stakeholder Kenya Credit Rating Committee to engage rating agencies and monitor rating drivers and develop a detailed, actionable plan to improve Kenya’s credit rating outlook and lower the cost of debt, supporting the realization of Vision 2030 and the SDGs.

  • I&M Bank rated A+ with stable outlook

    I&M Bank rated A+ with stable outlook

    Fitch Ratings has assigned I&M Bank and its parent company I&M Group Plc a national long-term rating of A+ with a stable outlook.

    Both entities have also been assigned Long-Term Issuer Default Ratings (IDRs) of ‘B’ with a negative outlook. The respective negative outlooks mirror the outlook on the sovereign rating.

    “I&M Group’s business profile is underpinned by its established banking franchise in Kenya and growing regional businesses, which provide some competitive advantages and revenue diversification,’’ said Fitch Ratings.

    These ratings are driven by their standalone creditworthiness and are also reflective of the business resilience and a solid strategic focus by all the business units across the East African region and beyond.

    “I&M Bank is a Tier 1 bank in Kenya with a moderate domestic market franchise of around 6% of sector loans and 5% of sector deposits at end-1H23,” added the global credit agency.

    I&M Group Chief Executive Officer Kihara Maina said the lender is embarking on its 3rd iteration of their iMara Strategy (2024 – 2026) which is focused on impacting lives through expansion into new horizons in terms of regional operations, segments served, and products offered.

    “As a group we are pleased with this rating by Fitch which indicates strong profitability and reasonable capital buffers amidst challenging operating conditions. We remain focused on implementation of the refreshed strategy to deliver on our short- and medium-term objectives,” said Maina.