S&P Downgrades Kenya's Credit Rating: Weaker Fiscal and Debt Management Highlighted
Friday, 23 August 2024, 14:09
S&P Downgrades Kenya's Credit Rating
The recent S&P downgrade of Kenya's credit rating affects the country's ability to attract foreign investments. This significant action was triggered by a noted weaker fiscal and debt trajectory that poses challenges to economic growth.
Factors Behind the Decision
- The repeal of the 2024/2025 Finance Bill has raised alarms regarding fiscal management.
- Significant increases in public debt and rising interest payments.
- Concerns over government revenue and expenditure management.
Potential Impacts
With this downgrade, international investor confidence may waver, leading to potential further financial challenges for Kenya. Additionally, reliance on external financing may escalate due to increasing pressure on the local currency.
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.