Kenya is considering an innovative Kshs 129 billion debt-for-food swap to address its mounting Eurobond obligations and simultaneously tackle rising food prices. This strategy aims to replace expensive foreign debt with a cheaper loan, using the savings to pay off old balances and import bulk food.

• The proposed swap will be used to retire costly sovereign bonds maturing in 2031, according to the Director-General Public Debt, Raphael Otieno.
• The deal is backed by the U.S. International Development Finance Corporation (DFC) and is expected to conclude before the end of the current financial year.
• This initiative comes as Kenya grapples with persistent food insecurity and aims to cushion vulnerable households and stabilize inflation by securing food imports through structured financing.