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Kenya halves US debt in a year on accelerated payments

William Ruto and Donald Trump

President William Ruto (left) and US President Donald Trump.

Photo credit: Pool

What you need to know:

  • Move come after America ended its bilateral lending to foreign states.
  • Nairobi repaid more than Sh16 billion of the loan owed to Washington in the period.
  • US government moved to end its bilateral lending for foreign states, shifting to direct project financing through its State-owned lenders and agencies.

The government cut debt owed to the United States by half in the year ended December 2025 in the fastest repayment rate yet, as it rushes to clear the debt to comply with Washington’s decision to stop bilateral lending.

Kenya repaid more than Sh16 billion ($124.65 million) of the bilateral debt in the period, cutting the total debt owed to Washington by more than half to Sh15.98 billion ($123.82 million) from Sh32 billion ($248.47 million) the year before, according to the latest disclosures by the National Treasury.