Kenya’s Public Debt Management Strategy Prioritizes Concessional Loans

Kenya’s updated Public Debt Management Strategy (2024–2027) prioritizes concessional over commercial borrowing to reduce debt servicing costs. The National Treasury aims to raise the share of concessional debt from 45% to 60% by 2027. New agreements with the World Bank, AfDB, and bilateral partners like Germany and Japan will fund infrastructure and climate projects. Commercial Eurobond reliance will decrease, with the $2 billion maturity in 2024 refinanced through a syndicated loan at better terms. Debt-to-GDP is projected to fall to 63% by 2026 from 71% in 2023. The strategy supports fiscal sustainability under the IMF program.