Browsing: tax revolt in Kenya

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 …