Not necessarily, it just means that Kazakh citizens will have a root cert installed on their machine that will allow the government to MITM their https connecti

Not necessarily, it just means that Kazakh citizens will have a root cert installed on their machine that will allow the government to MITM their https connections. The connection between the MITM and the client will be encrypted (just with the government-controlled cert instead of the server's cert), and the MITM will have an encrypted connection to the server. I suppose it is possible that the MITM could make an unencrypted connection to the server, but I don't know a good reason for the government to do that.