AGL 40.30 Increased By ▲ 0.30 (0.75%)
AIRLINK 130.90 Increased By ▲ 1.37 (1.06%)
BOP 6.80 Increased By ▲ 0.12 (1.8%)
CNERGY 4.59 Decreased By ▼ -0.04 (-0.86%)
DCL 8.98 Increased By ▲ 0.04 (0.45%)
DFML 43.30 Increased By ▲ 1.61 (3.86%)
DGKC 84.05 Increased By ▲ 0.28 (0.33%)
FCCL 33.00 Increased By ▲ 0.23 (0.7%)
FFBL 78.10 Increased By ▲ 2.63 (3.48%)
FFL 11.77 Increased By ▲ 0.30 (2.62%)
HUBC 110.62 Increased By ▲ 0.07 (0.06%)
HUMNL 14.56 No Change ▼ 0.00 (0%)
KEL 5.64 Increased By ▲ 0.25 (4.64%)
KOSM 8.28 Decreased By ▼ -0.12 (-1.43%)
MLCF 39.84 Increased By ▲ 0.05 (0.13%)
NBP 60.85 Increased By ▲ 0.56 (0.93%)
OGDC 200.10 Increased By ▲ 0.44 (0.22%)
PAEL 26.70 Increased By ▲ 0.05 (0.19%)
PIBTL 7.80 Increased By ▲ 0.14 (1.83%)
PPL 160.26 Increased By ▲ 2.34 (1.48%)
PRL 26.81 Increased By ▲ 0.08 (0.3%)
PTC 18.65 Increased By ▲ 0.19 (1.03%)
SEARL 83.52 Increased By ▲ 1.08 (1.31%)
TELE 8.20 Decreased By ▼ -0.11 (-1.32%)
TOMCL 34.49 Decreased By ▼ -0.02 (-0.06%)
TPLP 9.17 Increased By ▲ 0.11 (1.21%)
TREET 17.01 Decreased By ▼ -0.46 (-2.63%)
TRG 59.89 Decreased By ▼ -1.43 (-2.33%)
UNITY 27.99 Increased By ▲ 0.56 (2.04%)
WTL 1.43 Increased By ▲ 0.05 (3.62%)
BR100 10,557 Increased By 150.2 (1.44%)
BR30 31,999 Increased By 285.8 (0.9%)
KSE100 98,528 Increased By 1199.8 (1.23%)
KSE30 30,678 Increased By 485.6 (1.61%)

JOHANNESBURG: Moody’s credit rating agency said Kenyan President William Ruto’s decision to withdraw planned tax hikes in response to widespread protests would complicate the disbursement of future International Monetary Fund funding.

“Larger fiscal deficits will increase the government’s borrowing requirements, which could add to pressure on domestic borrowing costs and increasing government liquidity risks,” Moody’s said in an issuer comment, which does not announce a rating action.

“Uncertainty over the fiscal trajectory and IMF programme would also challenge the government’s effort to increase external funding through, for example, a sustainability-linked bond,” it added.

Kenya braces for fresh protests despite president’s tax climbdown

Ruto said on Wednesday that his administration would reduce spending to compensate for the withdrawal of the planned tax increases contained in a highly contested finance bill.

But Moody’s said focusing more heavily on reducing spending rather than boosting revenue would almost certainly slow the pace of fiscal consolidation.

Comments

200 characters