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Browsing: tax revolt in Kenya
- 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 …
- 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 …