Treasury to Launch Digital Debt Payment System in February

The National Treasury plans to introduce an innovative external debt payment platform next month as part of efforts to upgrade the nation’s public financial management infrastructure. According to a statement released on Tuesday, January 27, Treasury Principal Secretary Chris Kiptoo confirmed the system’s launch date set for Monday, February 2, operating under the Treasury Single Account structure. The PS expressed confidence that this new platform will significantly improve efficiency, transparency, accountability, and governance in handling the nation’s external debt commitments. According to the Principal Secretary, the system will connect the Meridian Debt Management System with the Central Bank of Kenya’s exchange rates platform, IFMIS, Exchequer requisition process, and the Office of the Controller of Budget approval procedures. “The project team briefed me on implementation progress, with automation going live on February 2, 2026. A one-month parallel testing period will ensure a smooth, controlled, and risk-managed transition,” Kiptoo explained. “This platform will facilitate the effortless creation, authorization, and processing of debt payment instructions, completely replacing manual, paper-based methods with secure digital workflows,” he added. By late 2025, the nation’s external debt had reached approximately Ksh 5.5 trillion, accounting for 47 percent of the total public debt, which surpassed Ksh11 trillion. Recently, Fitch, the credit rating agency, observed developments including the partial issuance of a Ksh129 billion Eurobond maturing in 2028 and the repurchase of Ksh115 million Eurobond due in 2027. In a report issued on Friday, January 23, the rating agency also highlighted the government’s decision to convert certain loans from US dollars to Chinese yuan. The agency pointed out that despite a reasonably optimistic economic forecast, the country faces considerable financing requirements to meet its foreign debt obligations, with external borrowing anticipated to surge significantly in 2026. “Government external debt service, covering both principal repayments and interest, following Eurobond buybacks, is projected to increase in the fiscal year ending June 2026,” the agency cautioned. “Gross external debt service will again exceed $5 billion during the 2028-2030 fiscal years, maintaining high external financing requirements,” it stated.