• Kenya will launch a digital system to automate external debt payments from February 2, 2026.
• External debt stood at about $42 billion at end-2025, nearly half of total public debt.
• The platform will integrate debt management, exchange rate, and Treasury approval systems.

Kenya’s National Treasury announced on Tuesday, January 27, the upcoming launch of a digital system designed to automate external debt servicing. Treasury Principal Secretary Chris Kiptoo disclosed the plan after a project team briefing attended by representatives from the Office of the Controller of Budget, the Auditor-General, and the World Bank.

The platform will become operational on February 2, 2026, followed by a one-month parallel run to ensure a secure transition.

The system will integrate several core components, including the Meridian debt management system, the Central Bank of Kenya’s foreign exchange rate system, and the Treasury’s request and approval processes. This architecture aims to automate the full payment chain, from instruction generation to approval and execution, replacing manual procedures with secure digital workflows.

Chris Kiptoo said the reform will reduce delays and errors while strengthening oversight of the country’s financial obligations.

The initiative comes as Kenya’s external debt accounts for nearly half of total public debt. At the end of 2025, external debt reached about 5,500 billion shillings, or roughly $42 billion, out of total public debt exceeding 11,000 billion shillings.

The scale of these obligations makes transparent and reliable debt-servicing mechanisms critical, especially as Fitch highlights rising financing needs and the importance of effective external borrowing management in 2026.

By modernising debt payment management, the platform could speed up transaction processing, strengthen transparency, and improve the traceability of public funds. The system should also enhance coordination among government agencies and tighten supervision of financial obligations.

However, the shift to a fully digital system introduces cybersecurity challenges, including protection against intrusions, fraud, and technical failures. Data security and system resilience against cyberattacks will remain decisive in ensuring reliable and uninterrupted debt servicing.

This article was initially published in French by Samira Njoya

Adapted in English by Ange J.A de BERRY QUENUM