Kenya is reportedly planning a $1 billion debt-for-food security deal to reduce its spiraling debt burden.
Such a deal would likely involve Nairobi replacing costly existing debt with cheaper financing on the condition that it used the savings toward boosting food security, Reuters said, similar to recent debt-for-nature swaps.
Kenya has so far managed to avoid a debt default, but given the increasing political pressure faced by President William Ruto’s administration, with a spate of deadly protests against his administration over the last year regarding the cost of living and a proposed tax hike, experts think the government will find it politically challenging to reduce debt levels. The government spends around a third of its revenue on debt interest payments, one of the highest ratios in the world.
