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negative outlook Kenya Moody's
  • Ratings agency Moody’s has downgraded Kenya’s local and foreign-currency long-term issuer ratings to Caa1 from B3, with a negative outlook.
  • This downgrade ushers the economy into an era of reduced capacity to rollout revenue-based fiscal consolidation.
  • The move also has broader implications for the country’s near-term economic stability.

East Africa’s giant economy is at a pivotal moment following ratings agency Moody’s move to downgrade its local and foreign-currency long-term issuer ratings to Caa1 from B3, with a negative outlook.

This downgrade, which comes just a week after a three-week nationwide revolt forced the government to shelve the Finance Bill 2024, ushers the economy into an era of reduced capacity to roll out revenue-based fiscal consolidation. This negative outlook also has broader implications for the country’s near-term economic stability, Moody’s states.

Kenya’s fiscal consolidation challenges amid negative outlook

Moody’s downgrade signals the Kenyan government’s shift away from planned tax increases, opting …

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  • Algeria tops countries holding airlines’ blocked funds in Africa at $261 million followed by countries within the XAF Zone that are trapping $140 million.
  • Ethiopia has $115 million in blocked funds for airlines while its neighbour Eritrea is sitting on $75 million.
  • Zimbabwe closes the top five countries with blocked funds at $69 million.

Airlines across the world continue to struggle to repatriate their profits, with several African countries accounting for the bulk of blocked funds at $880 million. This amount, which represents 52 percent of the total $1.68 billion blocked funds globally continues to act as a hindrance to the growth of the industry post-Covid-19 fallout.

Data from the International Air Transport Association (IATA) has single out Algeria, the XAF Zone, Ethiopia, Eritrea, and Zimbabwe as the top five countries in Africa where airlines are struggling to repatriate their profits.

Across Africa, Algeria tops among …

  • Kenya’s Political Instability has seen calls for President Ruto’s impeachment, a demand likely to persist soon. 
  • Reduced capital inflows suggest limited foreign exchange reserves at the central bank’s disposal to support the currency in the near term.
  • The analysist say tensions will likely de-escalate in the coming weeks, but expect market sentiments towards Kenya to remain bearish

The Kenyan shilling is expected to face pressure in July due to anticipated declines in capital inflows caused by political instability experts have warned.

The analysist from pan African market insights firm Stears are now saying that following the protests from June 18 to June 27, the currency depreciated by 0.29 per cent slightly dimming economic outlook.

This downward trend is likely to continue amid uncertainties surrounding the President’s push to step down and an upcoming IMF review.

Reduced capital inflows suggest limited foreign exchange reserves at the central bank’s disposal to support …

negative outlook Kenya Moody's
  • Ruto has bowed to public pressure and withdrawn the Finance Bill 2024, a piece of legislation that contained contentious tax increases.
  • His move follows deadly protests that engulfed Kenya on Tuesday leaving 22 dead and part of parliament set ablaze.
  • President Ruto: “It is clear that Kenyans want nothing to do with the bill. I concede.”

Kenya’s President William Ruto has bowed to public pressure and withdrawn the Finance Bill 2024, a piece of legislation that contained contentious tax increases, following deadly protests that engulfed Kenya on Tuesday.

The demonstrations, which saw parts of the parliament set ablaze, have been described as the most significant since Ruto took office in 2022.

In a national address late Wednesday, President Ruto acknowledged the widespread opposition to the bill, stating, “It is clear that Kenyans want nothing to do with the bill. I concede.” He assured the public that he would not …

  • Businesses in Kenya seeking government tenders will soon have to contend with new regulations.
  • Among the proposed changes is the amending of the compulsory requirement that compels the government to award tenders to the lowest bidder. 
  • According to the Institute of Economic Affairs the compliance rate of public procurement regulations is low.

Kenya’s Procurement Regulator Strategic Plan for businesses that seek government tenders will soon have to contend with new regulations should the Public Procurement Regulatory Authority forge ahead with the proposed changes on the issuance of state tenders.

Among the proposed changes is the amending the compulsory requirement that compels the government to award tenders to the lowest bidder. PPRA argues out that this has compromised the quality of some of the projects undertaken under this model of procurement.

The Authority’s Director General Patrick Wanjuki, said that in the next three years, PPRA is looking to strengthen its capacity …

  • Kariakoo Traders from Tanzania are striking against higher taxes heaped on them by the authorities.
  • The government has however assured the traders on the safety of their property.
  • Unlike tear gas and fights in neighbouring Kenya that have caught global attention, Tanzania’s strike is rather less chaotic.

No more taxes and the strike is the only apparatus we have to get what we want and the way forward” says Frank, a merchant and trader in the Tanzania’s open market pulse, Karikoo. Frank and like most of his peers, often young people, who invested significantly in stores that charge over $220 rent per month – is forced to see his investment wither by the day, as tax revolt intensifies.

Thanks to social media, the traders circulated a message on June 22, 2024 that directs all traders in Kariakoo to close their businesses, including their shops, offices and any other activities …

  • Kenyan Professional Workers expect employers to take the lead in supporting their relocation 
  • Nearly 70 per cent of Kenyan respondents cite financial and economic reasons to move abroad
  • Australia, the US, Canada, the UK, and Germany round out the top five most desired destination countries globally

The number of Kenyan professional workers looking for opportunities to work in other countries is higher than the global average, a new global survey has shown.

Despite global challenges such as geopolitical tensions, widespread economic concerns, and emerging virtual mobility trends from the past several years, moving abroad for work remains a dream for many workers around the world, with 23 per cent of global and 60 per cent of local professionals actively seeking jobs in other countries.

This essentially means that, every 6 out of 10 professionals working in Kenya are actively seeking jobs abroad a higher number than the global average of …

  • The deployment is part of a larger mission led by Kenya to restore order in Haiti, where gangs have taken control of most of the capital, Port-au-Prince.
  • Gangs in Haiti have been responsible for widespread killings, kidnappings, and sexual violence.
  • Police officers from Jamaica, the Bahamas, Barbados, Chad, and Bangladesh set to form part of the 2,500-international force.

Kenyan police depart for Haiti

The first group of Kenyan police officers has departed for Haiti to address the rampant gang violence plaguing the Caribbean nation. The deployment is part of a larger mission led by Kenya to restore order in Haiti, where gangs have taken control of most of the capital, Port-au-Prince, and have been responsible for widespread killings, kidnappings, and sexual violence.

Kenya’s commitment to leading this international force dates back to July 2023, when it volunteered to spearhead efforts to tackle the violence in Haiti. The mission, which includes …

  • The protests, dubbed “occupy parliament,” were coordinated and mobilised on social media in contrast to those led and sponsored by politicians.
  • Many were demonstrating for the first time and waved signs such as “Do Not Force the Taxes on Us,” while others chanted: “Ruto must go.”
  • Unlike previous political anti-government protests, these demonstrations are not characterised by looting, destruction of property, or stone-throwing.

Social media as a weapon

A bold new generation of young Kenyan protesters has emerged on the streets, forcing the government to back down on several unpopular tax proposals.

What started as anger on TikTok about a controversial finance bill has morphed into a revolt without being organised by political parties.

The government of President William Ruto has managed to do what generations of politicians in the East African nation still need to do unite huge numbers of Kenyans beyond ethnicity and party.

On 18th June 2024,

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