The National Treasury has released the 2025/26 Borrowing Plan, outlining a mix of innovative and traditional financing measures to manage the country’s debt obligations and plug budget gaps, with the country set for its first Debt-for-Food Swap.
On external financing, the Treasury confirmed plans to execute Kenya’s first-ever debt-for-food security swap in March 2026, a US$1 billion (KSh130 billion) transaction arranged with the World Food Programme. It also intends to raise US$500 million (KSh65 billion) through a Sustainability Linked Bond in the same month.
The framework maintains the UAE credit line, with the remaining US$1 billion expected to be drawn in December 2025 after an initial US$500 million disbursement last year.
Additionally, the government will float a Samurai Bond worth KSh22.1 billion in December 2025, in line with commitments announced during President William Ruto’s visit to Japan earlier this year.
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Notably, the borrowing plan makes no provision for IMF funding, following the collapse of Kenya’s four-year, US$3.6 billion programme in March. This omission raises questions about the direction of ongoing negotiations with the Fund.
On the domestic side, the Treasury shelved a planned bond switch in September 2025 but still intends to carry out five switches this fiscal year, with maturities rolled into at least 10-year notes.
The strategy reflects efforts to ease looming maturity pressures, though past precedents suggest plans could shift.
Only one new issuance is planned for the primary market in April 2026, with the rest of the borrowing expected to come from re-openings.
Analysts say this reflects continued caution over the yield environment, despite signs of moderation.
