By Brian Kiprono - Reporter
Kenya, 4 December 2025 - Kenya has won a major financial reprieve after the United States International Development Finance Corporation (DFC) approved a KSh 162 billion debt-for-food-security swap, offering the country room to tackle growing hunger pressures while easing its debt load.
President William Ruto confirmed the agreement in Washington, D.C., shortly after holding talks with DFC Chief Executive Ben Black.
The meeting took place on the sidelines of the signing of the DRC–Rwanda peace agreement, which Ruto is attending at the invitation of U.S. President Donald Trump.
The deal, described by Kenyan officials as one of the most important fiscal breakthroughs this year, allows DFC to take up part of Kenya’s costly commercial debt and convert it into long-term, non-manipulative financing.
The savings will be channelled directly into programmes meant to stabilise food systems—ranging from climate-smart agriculture to storage infrastructure and nutrition support.
“This is a smart and sustainable approach,” President Ruto said, noting that the swap would help the country redirect funds “from debt distress to food security investments that touch the lives of millions”.
The arrangement comes at a time when families across Kenya continue to battle unpredictable weather, rising food prices, and shrinking purchasing power.
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Government officials say the debt relief will allow the state to prioritise projects that build resilience in farming communities, including water harvesting and drought-response systems.
Beyond the swap, DFC signalled a deeper commitment to Kenya.
The agency is exploring investments in key national priorities such as renewable energy, major transport corridors, port modernisation, and the overhaul of Jomo Kenyatta International Airport. It also expressed interest in supporting Kenya’s proposed National Infrastructure Fund.
In what the State House described as a “vote of confidence”, DFC will also station a permanent representative in Nairobi from January 2026—a move expected to fast-track U.S.-Kenya investment partnerships.
Ruto also held separate discussions with IMF Managing Director Kristalina Georgieva, focusing on Kenya’s reform agenda and the country’s options for future financing.
For now, the debt-for-food agreement offers Kenya rare breathing space—and a chance to redirect scarce resources toward a sector that remains fundamental to the country’s long-term stability.
