What do you believe is the single most important factor driving up the cost of living in Nigeria?

President William Ruto during a previous event. [File, Standard]

President William Ruto’s administration is now facing a fresh headache in the form of higher borrowing costs after a third global rating agency downgraded Kenya’s credit rating in as many months, further limiting the country’s options for financing its growing debt obligations.

The latest downgrade by S&P, which cited concerns over the government’s fiscal consolidation efforts and mounting debt levels, comes at a precarious time for the administration. Ruto is grappling with the fallout from protests over his economic policies, which have eroded public trust and undermined his agenda.

The downgrade follows similar cuts by the other two major rating agencies since early July. Moody’s downgraded Kenya’s credit rating further into junk status in July, while Fitch downgraded sovereign rating to “B-” from “B” earlier this month, sending Kenya’s dollar bonds lower.

Analysts said yesterday, that the confluence of these challenges - the credit rating downgrades, the unrest, and the broader economic headwinds - has left the Ruto government in a perilous position as it seeks to rally international investor confidence and secure the financing needed to fund its ambitious development plans.

• Read More