Kenya cut its debt owed to the United States by half in the year ending December 2025 after making accelerated repayments, marking the fastest repayment rate recorded in recent years.
According to the National Treasury, the move is part of the government’s broader strategy to reduce external borrowing and improve the country’s debt sustainability. A Treasury official said the repayments demonstrate Kenya’s commitment to meeting its international financial obligations.
“The accelerated repayments demonstrate Kenya’s commitment to meeting its international obligations and improving its debt sustainability,” the official said.
The development comes at a time when Kenya is facing increasing pressure to manage its rising public debt and high debt servicing costs. Financial analysts say reducing bilateral debt could help strengthen the country’s economic outlook and boost investor confidence.
“Reducing debt owed to bilateral lenders like the United States helps improve Kenya’s debt profile and builds confidence among investors,” said an economic analyst.
The United States has been one of Kenya’s key bilateral lenders, providing financing for development programmes over the years, although Kenya still owes significant amounts to other external lenders, including multilateral institutions and international bondholders.
