NAIROBI, Kenya, Oct 12 — President William Ruto has announced plans for Kenya to explore becoming a sovereign client of Africa’s newly launched credit rating agency, while pushing for Nairobi to host a secondary jurisdiction of the institution in a move aimed at strengthening the continent’s influence over how its economies are assessed by global investors.

📻 Breaking It Down

In a congratulatory message following the launch of the Africa Credit Rating Agency (AfCRA) in Port Louis, Mauritius, Ruto said Kenya would begin discussions on the proposed Nairobi presence and its potential engagement with the agency.

The move comes as African governments seek alternatives to the dominant international credit rating agencies, amid concerns that existing assessments do not adequately capture the continent’s economic conditions and development potential, contributing to high borrowing costs.

“Kenya is pleased to welcome AfCRA and to commence discussions on Nairobi serving as a secondary jurisdiction for the agency, as well as on Kenya becoming a sovereign client of this important continental institution,” Ruto said.

📌 What You Need to Know

The agency was officially launched on October 7 under an African Union-backed initiative intended to provide independent, evidence-based assessments of African governments, businesses and institutions. It is designed to complement, rather than replace, established global rating agencies.

Ruto, who serves as the African Union Champion for Institutional Reform, said the initiative represented a broader effort to strengthen Africa’s financial sovereignty and ensure the continent has a greater role in shaping assessments of its creditworthiness.

“Its launch affirms a wider continental aspiration: Africa must shape its own narrative, strengthen its financial sovereignty and mobilise capital for development on fairer terms,” he said.

The establishment of AfCRA comes as African countries face mounting pressure from external debt repayments and the cost of financing development projects.

According to the African Union, Africa’s external debt service reached US$163 billion in 2024, up from US$61 billion in 2010, underscoring the growing demands on government finances.

The AU says the new agency will address gaps in information and analysis by incorporating African data, expertise and economic conditions into credit assessments.

📰 Source: Capital FM Kenya