|
Getting your Trinity Audio player ready...
|
🇰🇪 Kenya is preparing to launch a groundbreaking $1 billion debt-for-food swap by March 2026, aimed at easing its debt burden while addressing widespread food insecurity. The initiative, outlined in a Finance Ministry document, would allow Kenya to restructure part of its existing debt in exchange for commitments to invest in food security programs.
Negotiations are underway with the World Food Programme (WFP), which is expected to facilitate the deal. If finalized, the swap would redirect funds toward agricultural development, irrigation infrastructure, food storage, and nutrition initiatives. Over 3.4 million Kenyans currently face acute food insecurity, according to the UN Food and Agriculture Organization.
📉 Kenya’s public debt stood at 65.6% of GDP in 2024, down from a peak of 73% in 2023. The International Monetary Fund classifies the country as at high risk of debt distress. The proposed swap is part of a broader liability management strategy that includes sustainability-linked bonds and refinancing existing loans.
This would be Kenya’s second major debt conversion effort, following a €60 million climate-focused swap with Germany in 2024. Officials hope the food-focused model will serve as a template for future social impact financing across Africa.
State house kenya
