Treasury to Roll Out Digital Platform to Streamline Kenya’s Foreign Debt Payments

By Brian Kiprono - Reporter

Kenya, January 27, 2026 - Kenya’s National Treasury is preparing to switch on a new digital system for settling external debt, marking a significant shift away from manual processes as the government seeks tighter control over public finances.

The platform is scheduled to go live on Monday, 2 February, and will operate within the Treasury Single Account, according to Treasury Principal Secretary Chris Kiptoo. Officials say the move is aimed at making foreign debt payments faster, clearer and more accountable.

Speaking after a briefing by the project team on Tuesday, Kiptoo said the system would automate the entire debt payment chain — from generating instructions to approvals and final execution — replacing paper-based procedures with secure digital workflows.

“To ensure a smooth and low-risk transition, the system will run alongside the current processes for one month before fully taking over,” he said.

The new platform brings together several key government systems, including the Meridian Debt Management System, the Central Bank of Kenya’s exchange rate system, IFMIS, exchequer requisitions and approvals from the Office of the Controller of Budget. Treasury officials believe this integration will reduce delays and errors while strengthening oversight of external debt obligations.

The launch comes at a time when Kenya’s foreign debt remains a major pressure point. By the end of 2025, external debt stood at about KSh5.5 trillion, accounting for nearly half of the country’s total public debt, which has surpassed KSh11 trillion.

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Recent assessments, however, suggest some improvement in the country’s ability to meet its foreign obligations. Credit rating agency Fitch noted progress following the partial issuance of a KSh129 billion Eurobond due in 2028 and the buyback of a KSh115 million Eurobond maturing in 2027. It also observed that shifting some loans from US dollars to the Chinese yuan had slightly lowered annual debt servicing costs.

Despite these gains, Fitch warned that Kenya’s financing needs remain heavy. External borrowing is expected to rise sharply in 2026, with government foreign debt service projected to increase in the year ending June 2026 and climb above $5 billion annually between 2028 and 2030.

Treasury officials say the new payment system is one step towards better managing these growing obligations, as the government balances debt servicing demands with broader economic priorities.