The Kenyan Government will wire Ksh880 million to Israel in the 2024/25 financial year which will go towards external debt redemption.
This will be part of Ksh331 billion the Treasury will wire to different countries and financial institutions towards external debt redemption.
Kenya has also made similar loan repayments to Israel in the last two financial years.
For the 2022/23 financial year, Kenya paid a total sum of Ksh543 million while in the 2023/24 financial year, the amount increased to Ksh941 million.
President William Ruto’s administration will pay the last instalment of Ksh950 million to Israel in the 2026/27 financial year.
Israel is one of several countries in the Middle East that has been offering financial assistance to Kenya in terms of loans.
Other countries in the region that Kenya will be servicing debt include; Saudi Arabia, Kuwait and Abu Dhabi.
After making a payment of Ksh311 million to the Saudi Fund in the 2023/24 financial year, Kenya will pay Ksh103 in the subsequent financial year.
In the 2024/25 financial year, Kuwait will receive Ksh103 million and Abu Dhabi will receive Ksh204 million.
While the Ksh330 billion to be channelled towards debt repayment will put a strain on Kenya’s economic strength, it is significantly less than the amount paid in the current financial year.
Kenya Kwanza administration has used Ksh570 billion of revenue collected to settle foreign debts in the 2023/24 financial year.
President Ruto has promised to cut borrowing to ensure the government does not use much of its revenue in servicing debts at the expense of development.
