Kenya on Tuesday took advantage of the United Nations High-Level Political Forum (HLPF) to complain about perceived unfair appraisals by Credit Rating Agencies.
The complaint by Kenya was registered a day after S&P Global threatened to downgrade Kenya’s credit score on August 23, due to political unrest witnessed in the country.
Kenya's Deputy Permanent Representative to the United Nations Ambassador Njambi Kinyungu accused developed nations of biases in the sovereign credit rating system.
While delivering Kenya’s national statement at the 2024 HLPF ministerial segment, she urged the UN to address biases in Credit Rating Agencies (CRAs) to ensure equal treatment and fairness for all countries.
Kenya is of the view that CRAs are biased when assessing the nation’s ability to honour its international debt obligations.
Moody’s, a global CRA, had at the onset of Kenya’s protests downgraded the country’s credit rating score.
The negative listing by CRAs dissuades investors from subscribing to bonds as well as international financial institutions from advancing Kenya loans.
As such, Kinyungu asked the UN to relook at the ensure noting that it would ensure adequate and affordable financing not only for Kenya but other economically struggling African countries.
A positive credit rating system and the subsequent financing will help African countries achieve the Standard Development Goals (SDGs) Stimulus Fund which was launched by the UN in 2023.
Additionally, Ambassador Kinyungu called for the reform of the international financial architecture to make it responsive to the plight of countries in the global south.
“Strong partnerships are important in accelerating implementation of the SDGs, especially as we move toward the fourth Conference on Financing for Development and the Summit of the Future,” she added.
In August 2023, President William Ruto accused Moody’s of presiding over an unfair ratings system. The President claimed this was deliberate to ensure that Kenya defaulted on payment plans so that investors could benefit from increased interest rates.
