Ratings agency Fitch gives Kenya a stable outlook, easing debt fears

National Treasury building in Nairobi. The National Treasury had underscored the severe consequences of a negative rating from global agencies. [File, Standard]

The government received a crucial vote of confidence from Fitch Ratings on Friday last week after the global credit ratings agency affirmed the country's long-term foreign-currency issuer default rating at 'B-' with a stable outlook, averting a downgrade that top National Treasury officials had warned could "torpedo" the economy.

A credit rating or outlook is significant because it can sharply influence a country’s cost of borrowing in international financial markets, potentially triggering a vicious cycle of higher debt servicing costs and deeper fiscal strain.