S&P Downgrades Kenya Due to Weaker Fiscal and Debt Concerns
Friday, 23 August 2024, 13:10
S&P Downgrades Kenya
The global credit ratings agency S&P has taken a significant step by downgrading Kenya's credit rating to B- from B. This decision arises from serious concerns regarding the nation's weaker fiscal and debt trajectory. The recent repeal of the 2024/2025 Finance Bill is a critical factor.
Reasons Behind the Downgrade
- The repeal is expected to negatively affect fiscal revenue.
- Heightened uncertainty in economic policies is alarming for investors.
- The weak governance framework limits Kenya’s fiscal flexibility.
Potential Implications
- Reduced investor confidence could lead to increased borrowing costs.
- A negative outlook on future economic growth could emerge.
- International aid and partnerships may dwindle.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.