Kenyan President William Ruto's concessions in response to protests have not been enough to prevent further economic repercussions for the country. Moody's, the US-based ratings agency, has downgraded Kenya's debt rating further into junk territory and warned of a negative outlook. The downgrade comes after a wave of protests led the government to abandon proposed tax hikes. Moody's cut the ratings for Kenyan government debt by one level to Caa1, which is considered to have 'very high credit risk'. The agency cited Kenya's 'significantly diminished capacity' to raise and reduce debt as the reason for the downgrade. Kenya's public debt already amounts to around 70 percent of its gross domestic product, and the country will now face additional challenges in managing its financial situation [194af300].
President Ruto's decision to retract the finance bill, which aimed to replenish government coffers and reduce the country's debt burden, was met with widespread approval from the protesters. However, Moody's downgrade reflects the economic impact of the protests and the government's inability to address the underlying issues. The demonstrations, led by young Kenyans, highlighted the population's discontent with the proposed tax hikes and the government's handling of the economy. The protests escalated into an ongoing campaign against President Ruto and his government, resulting in deadly violence and significant damage to the country's economy. The downgrade by Moody's further underscores the need for effective economic reforms and a resolution to the ongoing crisis [194af300].