Kenya, U.S. Agency Agree to $1 Billion Thematic Debt Swap
Quidah is an online platform that connects investors with curated opportunities and expert insights on Africa’s emerging markets, while offering businesses promotional services, partnership facilitation, and market intelligence to attract capital and grow their operations.
Industries
Kenya and the U.S. International Development Finance Corporation (DFC) agreed to a $1 billion thematic debt swap during President William Ruto’s Washington visit, replacing high-cost debt with concessional financing for food security programs amid public debt at 68.8% of GDP in FY2024/25. Ruto announced on X that DFC CEO Ben Black confirmed the deal, mirroring debt-for-nature swaps by Ecuador, Belize, and Gabon, with estimated yield savings of 200-300 basis points annually.
DFC will station a permanent representative in Nairobi from January 2026 to deepen engagement across food security, infrastructure, energy, and ICT, per Ruto’s statement. “We also 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,” Ruto posted. The swap creates fiscal space for agricultural investment while signaling stronger U.S. financial partnership.
