S&P Latest to Downgrade Kenya's Credit Rating After Fitch, Moody's
TLDR
- Kenya's credit rating downgraded from "B" to "B-" by S&P on August 23, 2024, signaling fiscal and debt concerns.
- Concerns rose due to Kenyan government's abandonment of proposed tax increases meant to stabilize public finances.
- Fitch and Moody's also downgraded Kenya's credit ratings, indicating widespread worry over the country's financial situation.
Kenya's financial standing has taken another hit as the American credit rating agency Standard & Poor's (S&P) downgraded the nation's long-term sovereign credit rating from "B" to "B-" on August 23, 2024.
This downgrade follows similar actions by Fitch and Moody's, further signaling growing concerns over the country's fiscal and debt outlook. The outlook remains stable, while the short-term rating is maintained at "B."
S&P cited the Kenyan government's recent decision to abandon proposed tax increases, originally intended to stabilize public finances, as the primary reason for the downgrade.
You can follow Daba’s reporting on Africa on WhatsApp. Sign up here
Points clés à retenir
S&P's assessment reflects apprehension that Kenya's medium-term fiscal and debt conditions will deteriorate, made worse by the decision to retract key fiscal measures outlined in the 2024/2025 Finance Bill. Although the government has attempted to mitigate the impact by reducing expenditures, the budget deficit is expected to widen to 4.3% of GDP, up from the initially projected 3.3%. Kenya also faces the challenge of repaying $2 billion annually over the next three financial years (2025-2027). The country's debt, estimated at $78 billion, has seen its debt-to-GDP ratio balloon from 39.8% in 2013 to 73.3% by the end of 2023, far exceeding the 55% threshold recommended by the Bretton Woods institutions.
Vous pensez que quelqu'un d'autre devrait voir ça ?
Investir dans cette opportunité et dans d'autres opportunités à travers l'Afrique
Téléchargez l'application daba finance sur votre mobile via
Passer à l'action.
Télécharger l'application
Entrez en partenariat avec nous
Débloquez des opportunités commerciales passionnantes et un potentiel de croissance.
Rejoindre Daba
Devenez membre de notre communauté dynamique et profitez d'avantages exclusifs.
Contactez-nous
Contactez-nous pour toute demande de renseignements, assistance ou collaboration.