US ratings agency Fitch Ratings has sounded the alarm for Kenya's economy, downgrading its Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'B-' from 'B'. The downgrade reflects heightened risks to Kenya's public finances, largely driven by political instability and rising domestic debt costs. Kenya's fiscal pressures are compounded by rising interest payments and higher borrowing costs. Kenya's external debt service obligations will moderate slightly in FY25 but will remain substantial in the following years. However, weak governance, rising interest payments, a narrow revenue base, and high external indebtedness constrain the rating.

Source: Daily Nation August 03, 2024 04:42 UTC