Moody’s Cuts Kenya’s sovereign rating deeper into junk status

 

Source: Africa Publicity

International credit ratings agency, Moody’s, has cut Kenya’s sovereign rating deeper into the junk territory.

On Monday, July 8, 2024, Moody’s cited Kenya’s diminished capacity to implement a fiscal consolidation strategy to contain its debt burden as a reason for pushing the East African nation’s rating into the junk zone.

Moody’s downgraded Kenya’s local-and-foreign-currency long-term issuer rating and foreign-currency senior unsecured debt ratings to “Caa1” from “B”.

The latest ratings come after President William Ruto in June this year withdrew planned tax increments in response to mass protests that resulted in the deaths of 24 people.

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