Kenya has secured a USD 1 billion (approximately Ksh129 billion at the current exchange rate) debt-for-food swap deal with the United States to support food security and alleviate the country's debt burden.
The agreement was reached following President William Ruto’s meeting with Ben Black, the CEO of the U.S. International Development Finance Corporation (DFC), in Washington, D.C.
Under the deal, DFC will purchase a portion of Kenya’s expensive commercial debt, allowing the country to repay it under more favourable, lower-interest terms.
The savings made from reduced interest payments will be redirected to critical food security programmes. These include investments in agricultural infrastructure, climate-smart farming, nutrition, and hunger management.
“This is a smart and sustainable approach,” said President Ruto. “We appreciate DFC for agreeing to proceed with the $1 billion debt-for-food security swap to allow us to replace costly existing debt with lower-cost financing.”
The DFC is a U.S. government-owned agency that supports development in low- and middle-income countries by facilitating private sector investment, with its latest involvement expected to deepen U.S.–Kenya bilateral ties, especially in infrastructure, food systems, and energy.
“We welcome the DFC’s willingness to increase its scope of engagement with Kenya,” Ruto added. “This partnership aligns with our national development priorities and supports our agenda for inclusive, sustainable growth.”
In addition to the debt swap, the DFC expressed interest in backing Kenya’s proposed National Infrastructure Fund and supporting key upgrades to roads, ports, and the Jomo Kenyatta International Airport.
President Ruto also announced that DFC will post a representative to Nairobi from January 2026, enhancing collaboration and accelerating U.S. investments in the region.
The debt-for-development model offers Kenya fiscal breathing room while tackling long-term food insecurity challenges worsened by climate shocks and global inflation.
Separately, President Ruto held discussions with IMF Managing Director Kristalina Georgieva, centred on enhancing support for Kenya’s reform agenda and sustaining economic momentum.
The meeting comes amid mixed signals from Kenya regarding its next steps with the Fund. While the National Treasury has indicated interest in a funded programme, the Council of Economic Advisors suggests a stronger inclination toward tapping commercial markets for financing.
