Moody’s maintains negative outlook for Kenya

Rating agency Moody's has maintained a negative outlook for Kenya in a recent report, citing concerns about the country's fiscal position and rising debt burden. In an interview with CNBC Africa, Moody's Vice President and Senior Analyst, David Rogovic, highlighted the key factors driving the negative outlook. Rogovic pointed to the deterioration in Kenya's fiscal position, including a rising debt burden and deteriorating interest affordability over several years. The impact of the COVID-19 pandemic has further exacerbated these challenges, with fiscal consolidation prospects delayed until after the economy begins to recover. Additionally, Rogovic mentioned the increased liquidity pressure on Kenya due to the need to borrow to cover the fiscal deficit and roll over maturing debt, which amounts to close to 20 percent of GDP each year. These factors, combined with global financial conditions, informed Moody's decision to maintain the negative outlook for Kenya.