Nairobi, September 2025 — Kenya is negotiating an unprecedented $1 billion “debt-for-food” swap, aiming to ease repayment pressures while channelling resources directly into food imports. The plan, currently under discussion with international lenders, would allow Kenya to restructure part of its foreign obligations by repaying in food commodities rather than cash.
Officials argue that the initiative is a strategic response to soaring food prices and currency depreciation, which have strained households and the government’s fiscal position. By redirecting repayment channels, Kenya hopes to secure stable grain supplies, curb inflation, and strengthen food security.
The debt-for-food swap mirrors debt-for-climate and debt-for-nature models already tested in parts of Africa and Latin America. However, this would be one of the largest such deals focused solely on food. Analysts say it could help Kenya bridge a short-term liquidity gap and cushion vulnerable populations, but warn of long-term risks if debt continues to mount without structural reforms.
Kenya’s debt-to-GDP ratio stands at over 70 per cent, with external repayment obligations piling up in 2025–2027. A deal of this scale would not erase the country’s fiscal burden but could offer breathing space as Nairobi pursues broader economic stabilisation measures.
Observers across Africa are watching closely, as the model could inspire similar moves in other countries grappling with high debt and food insecurity.