Treasury CS Rotich dismisses Moody's ranking

Treasury Cabinet Secretary Henry Rotich ?. (Photo: Courtesy)

Increased focus on the ability of the Government to settle debts was heightened on Thursday as Finance Cabinet Secretary Henry Rotich deflected a possible downgrade in Kenya’s risk profile.

Global credit rating Moody's has put Kenya’s at B1 long-term rating for a downgrade citing persistent, large, primary deficits and high borrowing costs continue to drive Government indebtedness higher.

“The decision to place the rating on review for downgrade was also prompted by uncertainties weigh over the future direction of the country’s economic and fiscal policy and in part due to evolving political dynamics,” Moody's said on October 2. However, CS Rotich said Moody's did not do a comprehensive audit, and had only done a ‘desktop analysis’ of Kenya’s debt levels.

The CS said Treasury would welcome the review where they would share hard numbers with the rating agency. “Moody’s is just doing freelance rating.”