Kenya has secured a Ksh129 billion debt-for-food agreement with the United States in a major step aimed at easing the country’s fiscal pressure while strengthening long-term food security systems.
The deal was finalised during President William Ruto’s meeting with U.S. International Development Finance Corporation (DFC) CEO Ben Black in Washington, D.C., where the American agency committed to purchasing a portion of Kenya’s costly commercial debt. The arrangement will allow the government to repay the loans under lower-interest, more favourable terms.
Savings from the deal will be channelled into critical food security programs, including agricultural infrastructure, climate-smart farming, nutrition, and hunger-response systems areas the government says are central to building resilience amid climate shocks and rising global prices.
President Ruto described the agreement as a “smart and sustainable” strategy that aligns with Kenya’s development priorities and opens space for more targeted investments in food systems. The partnership is also expected to deepen U.S.–Kenya bilateral ties, particularly in infrastructure and energy.
DFC also signalled interest in supporting Kenya’s proposed National Infrastructure Fund and financing upgrades to key roads, ports and Jomo Kenyatta International Airport. The agency will station a permanent representative in Nairobi beginning January 2026 to accelerate investment collaboration.
Separately, President Ruto held talks with IMF Managing Director Kristalina Georgieva on continued support for Kenya’s economic reforms, even as debate persists locally on whether the country should pursue a new IMF-funded program or rely more on commercial markets.
The debt-swap deal is expected to offer Kenya short-term fiscal relief while directing resources toward long-term food security goals one of the country’s most pressing challenges.
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