NAIROBI: The US ratings agency S&P has downgraded Kenya’s credit rating, citing President William Ruto’s decision to scrap a controversial finance bill after deadly protests. “S&P Global Ratings lowered its long-term sovereign credit rating on Kenya to B- from B,” the ratings agency said Friday.
“The downgrade reflects our view that Kenya’s medium-term fiscal and debt outlook will deteriorate following the government’s decision to rescind all tax measures proposed under the 2024/2025 Finance Bill,” a statement said.
The outlook was “stable” the agency said, citing expected “strong economic growth and continued access to concessional external financing.”
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However, it added, “Kenya’s structurally large external imbalances remain a key vulnerability.”
Ruto cancelled the unpopular tax hikes after the initially peaceful and youth-led nationwide rallies turned violent, leaving more than 60 people dead according to Kenyan rights groups.
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