Kenya halves US debt in a year on accelerated payments
Move come after America ended its bilateral lending to foreign states...
✨ Key Highlights
Kenya has significantly reduced its debt to the United States, cutting it by half in the year ending December 2025 in a rapid repayment effort driven by America's shift away from bilateral lending.
- Kenya repaid over Sh16 billion ($124.65 million) of its bilateral debt to the US, reducing the total owed to Sh15.98 billion ($123.82 million).
- This move follows the US government's decision to end bilateral lending and focus on direct project financing through its state-owned lenders and agencies like the US International Development Finance Corporation (DFC).
- The strategy change by Washington prompted Treasury Cabinet Secretary John Mbadi to announce that Kenya would clear these loans within two to three years.
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Kenya halves US debt in a year on accelerated payments - March 2026
Kenya has significantly reduced its debt to the United States, cutting it by half in the year ending December 2025 in a rapid repayment effort driven by America's shift away from bilateral lending. Kenyan ministries are set to see an 11.3 percent increase in their budgets, totaling an additional Sh287.4 billion for the 2025/26 financial year due to mounting spending pressures. In Uganda, Minister of Energy and Mineral Development Ruth Nankabirwa urged petroleum marketing companies not to increase pump prices due to the Middle East crisis, emphasizing there is no justification for such hikes.
