Browsing: S&P Global Ratings

• Global ratings agency S&P downgrades Kenya from “B” to “B-” on weaker debt trajectory.
• S&P says Kenya’s financial outlook has deteriorated following the rejection of Finance Bill 2024, which was intended to raise tax revenues.
• Agency projects that Kenya’s budget deficit will widen by almost two percentage points, reaching 4.3% for the 2025 fiscal year.

S&P Global Ratings has further downgraded Kenya’s credit score, pushing the East African nation’s rating deeper into junk territory. This downgrade follows the government’s decision to reject controversial tax increases in late June that were aimed at addressing fiscal imbalances.

The latest move by S&P places East Africa’s biggest economy’s rating on par with countries such as Egypt and El Salvador.

The rejection of the 2024/2025 Finance Bill, which was expected to introduce several tax increases, has been a pivotal moment for Kenya’s economic trajectory. The bill included tax hikes on essential items such as …