Fitch downgrades Kenya after protests

Fitch Ratings has lowered Kenya’s credit rating from “B” to “B-”, pointing to increased risks to the nation’s finances after the government retracted planned tax measures due to public protests.

The Kenyan government, yielding to demonstrators, scrapped a tax proposal intended to generate an additional $2.7 billion in revenue, a move initially advised by the IMF to correct fiscal disparities.

Fitch warns of the ongoing threat of social unrest, which could hinder efforts to stabilize the economy.

Kenya faces hurdles in obtaining foreign loans, exacerbated by high interest rates and diminished foreign reserves.

Moody’s had previously reduced Kenya’s rating, and S&P is expected to announce its decision on August 23.