S&P downgraded Kenya’s rating (IDR) to B- from B and changed the outlook from Negative to Stable, citing an anticipated deterioration in the fiscal and debt outlook due to the government’s reversal of tax measures proposed in the 2024/2025 Finance Bill. However, the stable outlook is supported by expectations of strong economic growth and continued access to concessional external financing, which should offset high-interest costs and slower fiscal consolidation.