Kenya in Talks for Ksh129.7 Billion Debt Swap With U.S. Bank

Kenyan government, led by President William Ruto, is negotiating with a major U.S. bank to organize a debt swap of Ksh129.7 billion to ease the burden of high domestic borrowing. The swap may involve one of Kenya's outstanding Eurobonds and is part of a Ksh700 billion external financing program for the fiscal year 2026/2027, including panda bonds, sukuk, and eurobonds. Initiated in 2024, the debt management strategy aims to refinance existing debt on better terms, with potential savings directed toward food support programs, although the specific transaction has not been officially confirmed.