• Kenya is negotiating a $1 bln debt-for-food deal with the World Food Program.

• The plan would channel debt relief into farm projects, irrigation, storage, and nutrition.

• Over 3.4m Kenyans face acute food insecurity as debt levels remain high at 65.6% of GDP.

Kenya is seeking to finalize by March 2026 a debt-for-food swap worth an estimated $1 billion with the World Food Program (WFP), according to a Finance Ministry document.

The mechanism would allow the country to convert part of its existing debt into food resources without taking on new loans. Negotiations with the WFP focus on transforming part of Kenya’s debt into investments in food security programs.

Funds freed up through the swap could be directed toward agricultural projects, irrigation systems, food storage facilities, and nutrition programs, helping ease food insecurity in the East African nation.

The UN Food and Agriculture Organization (FAO) estimates that more than 3.4 million Kenyans currently face acute food insecurity, driven by climate change, population growth, and limited access to modern farming practices.

The deal could also help ease Kenya’s debt burden. The International Monetary Fund (IMF) classifies the country as being at high risk of debt distress. Public debt rose from 35.7% of GDP in 2011 to 73% in 2023, before falling back to 65.6% in 2024, mainly due to the appreciation of the shilling.

This would not be Kenya’s first experience with debt swaps. In 2024, Germany supported a €60 million debt conversion initiative in exchange for Kenyan government investments in climate projects, the ministry document noted