Denis Young
Elder Lister
Just under a year ago Moody downgraded Kenya's outlook to negative after the collapse of the finance bill citing liquidity issues that would be caused by Kenya failing to collect adequate revenue via FB. Since then, a lot has gone into raising revenue and managing debt. Frankly, the regime has done an exemplary job considering the frequent political attacks and destabilization attempts by rogue actors, ill-informed kids and their clueless cheerleaders.
Liquidity problems are easing, debt servicing costs have come down with the strengthening of the shilling, monetary policy is easing and interest rates are coming down and last but not least, political stability is being maintained with the broad-based government. All these are important ingredients for strengthening a weak economy. And with that, Moody recognizes that the economy is on a recovery trend and have therefore shifted the outlook to positive.
Like I said to @Okiya before, 2025 will be the year when Kenyans begin to see the fruits of their last 2 years of pain.
A positive Moody rating reduces our refinancing costs. Next month, Feb 5, the MPC meet and we expect another rate cut or hold, which would go further to reduce interest rates. Soon businesses will access cheaper credit and private sector growth will kick in. The weatherman is predicting rainfall and with the cheap fertilizer and seed we might have another bountiful planting season to keep food inflation low.
It is all snowballing in the macros and soon it will begin to bleed into the micros. Things are starting look up.
Liquidity problems are easing, debt servicing costs have come down with the strengthening of the shilling, monetary policy is easing and interest rates are coming down and last but not least, political stability is being maintained with the broad-based government. All these are important ingredients for strengthening a weak economy. And with that, Moody recognizes that the economy is on a recovery trend and have therefore shifted the outlook to positive.
Like I said to @Okiya before, 2025 will be the year when Kenyans begin to see the fruits of their last 2 years of pain.
A positive Moody rating reduces our refinancing costs. Next month, Feb 5, the MPC meet and we expect another rate cut or hold, which would go further to reduce interest rates. Soon businesses will access cheaper credit and private sector growth will kick in. The weatherman is predicting rainfall and with the cheap fertilizer and seed we might have another bountiful planting season to keep food inflation low.
It is all snowballing in the macros and soon it will begin to bleed into the micros. Things are starting look up.
