The global ratings agency S&P on Friday raised Kenya's long-term sovereign credit rating from “B-” to “B”, citing a mitigation of short-term external liquidity risks.

Kenya enjoyed renewed investor confidence after global credit rating agency S&P Global raised the country's long-term sovereign credit rating from “B-” to “B” from “B”.

According to the statement released by the agency, solid export earnings and diaspora transfers have strengthened the country's foreign exchange reserves, helping to alleviate pressures related to significant external imbalances.

This upgrade reflects growing optimism about Kenya's fiscal outlook and marks a positive change in how international markets may view the country's credit risk.

Nonetheless, the transfer and convertibility rating was raised from “B” to “B+”, reflecting increased confidence in the country's ability to facilitate currency exchanges and cross-border capital flows.