Kenya will launch a new digital platform next week to automate the payment of its external debt, a move the government says will improve transparency, reduce processing delays and strengthen oversight as the country grapples with rising debt-servicing costs.
The system is scheduled to go live on Feb. 2, 2026, with a one-month parallel run alongside existing processes to ensure a smooth and secure transition, the Treasury said. During this period, both the manual and digital systems will operate simultaneously to identify and resolve potential technical or operational issues.
Kenya’s external debt stood at about 5.5 trillion shillings (US$42 billion) at the end of 2025, accounting for nearly half of total public debt, which exceeds 11 trillion shillings, according to Treasury data. Servicing this debt has put pressure on public finances, limiting room for spending on development and social programmes.
Treasury Principal Secretary Chris Kiptoo disclosed details of the new platform on Jan. 27 following a project briefing attended by officials from the Budget Office, the Office of the Auditor General and representatives of the World Bank.
The platform will integrate several core government systems, including the Meridian debt management system, the Central Bank of Kenya’s exchange-rate system, and the Treasury’s internal payment request and approval processes. Once fully operational, it will automate the entire payment chain, from the generation of payment instructions to approval and final execution.
“This should reduce delays and errors while improving oversight of the country’s financial obligations,” Kiptoo said, adding that the platform would replace largely manual workflows with secure digital processes.
Kenya has faced repeated scrutiny from lenders, ratings agencies and civil society groups over the management of its public debt, particularly external borrowing. Concerns have centred on rising debt-servicing costs, weak revenue growth and the need for greater transparency in how obligations are tracked and paid.
Ratings agency Fitch Ratings has highlighted Kenya’s growing financing needs and stressed the importance of efficiently managing external borrowing in 2026, as the government balances debt repayments with efforts to support economic growth.
More Read
Treasury officials say the new platform is designed to accelerate transaction processing while improving traceability of public funds. By linking debt data, exchange rates and payment approvals in a single digital environment, authorities aim to reduce the risk of missed payments, reconciliation errors and delays caused by fragmented systems.
The platform is also expected to improve coordination among government agencies involved in debt management, including the Treasury, the central bank and oversight institutions. Officials say this should strengthen accountability and provide clearer audit trails for external debt transactions.
Kenya has undertaken a series of reforms in recent years to modernise public financial management, including the adoption of digital systems for revenue collection and budget execution. Automating external debt payments is seen as a critical step in reducing operational risks in one of the most sensitive areas of public finance.
However, Treasury officials acknowledge that moving to a fully digital system also carries risks. Cybersecurity threats, system failures and potential fraud are among the concerns that authorities must address to ensure uninterrupted debt service.
“Protecting sensitive data and ensuring system resilience will be critical,” Kiptoo said, noting that safeguards would be put in place to guard against intrusions and technical disruptions.
Kenya has already faced cyber incidents affecting government systems in recent years, underscoring the importance of robust security measures as digitalisation expands across public institutions.
More Read
Economists say that while the platform will not reduce the size of Kenya’s debt, it could help restore confidence among creditors and investors by demonstrating stronger controls and transparency.
“Efficient and transparent debt servicing is essential for maintaining market access, especially at a time when global financing conditions remain tight,” said a Nairobi-based economist, who asked not to be named.
The government is also pursuing broader fiscal consolidation measures under an International Monetary Fund-backed programme, aimed at boosting revenues, cutting the budget deficit and stabilising debt levels.
As Kenya continues to navigate high borrowing costs and a heavy external debt burden, officials say the success of the new digital platform will be measured by its ability to deliver timely payments, reduce operational risks and strengthen public trust in the management of the country’s finances.
