S&P Global, an international credit rating company, on Monday warned that Kenya’s credit score would be downgraded should political unrest persist.
The global body stated that should the anti-government protests persist, Kenya’s credit score would be cut from B to B- on August 23, 2024.
Notably, this is the date S&P Global had scheduled to decide whether to cut or improve Kenya’s sovereign credit rating.
With the Gen Z-led protests causing economic uncertainty, S&P ruled out the possibility of improving Kenya’s credit score even if President Ruto succeeds in containing the unrest.
According to the global body, the best Kenya can hope for on August 23 is maintaining the B credit score and keeping it on a downgrade warning of a “negative outlook”.
S&P refrained from outrightly downgrading Kenya’s credit score noting that there was still some missing or incomplete information.
This was unlike Moody’s, another global credit rating company, which abruptly downgraded Kenya’s credit score at the onset of the nationwide protests.
“At that point (August 23) we will have more clarity around the International Monetary Fund," S&P was quoted by Reuters on the missing information they were waiting to make the decision.
"We will have more clarity around the appropriation bill, the spending allocations, the final budget, the finance bill (and) potentially the new cabinet members."
IMF’s assessment will be key in determining how the credit rating company rates Kenya considering the financial institution together with the World Bank are Kenya’s largest financiers.
President William has already started implementing austerity measures as proposed by the IMF as well as local protestors.
On the issue of selecting a cabinet, the Head of State has promised a leaner and more efficient team that carries a national outlook.
